ProPublica
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For-Profit Corporations Are Buying Up More Psychiatric Hospitals. Some Flout Federal Law With Scarce Repercussions.
ProPublica investigated the growing role of for-profit companies in the mental health care sector, fueled by the Affordable Care Act's requirements for coverage. A concerning trend is that over 40% of inpatient mental health beds are operated by for-profit entities, an increase from 2010. These for-profit hospitals are often cited for violating the Emergency Medical Treatment and Labor Act (EMTALA). The majority of hospitals cited, like those owned by Universal Health Services and Acadia Healthcare, are for-profit. Despite numerous violations, penalties from regulatory bodies like CMS are often minimal, and seem insufficient as deterrents. These hospitals may deny care to those without insurance or with complex needs, potentially driven by financial interests and cost-cutting strategies. The investigation highlights concerns about reduced quality of care and the potential for "cream-skimming," avoiding patients with severe psychiatric conditions. One specific example of this behavior is exemplified by Perimeter Healthcare, including instances of refusing patients care at their facilities. Despite repeated EMTALA violations, hospitals often face negligible consequences, making it appear this behavior is just the cost of doing business. Congressional representatives have expressed concerns about these findings.