Franklin, TN-based Psychiatric Solutions has received a subpoena from the U.S. Department of Justice for information regarding its Riveredge Hospital in Forest Park, IL. This comes within a few weeks of the Illinois Department of Children and Family Services placing Riveredge on an "intake hold," meaning that it will not admit wards of the state to the facility. The Department is keeping Riveredge on hold until it is comfortable that children are safe there. Last month, it was reported that the facility had left sexual predators unguarded, who had assaulted at least 10 mentally disabled children during the past three years.
The situation doesn't seem likely to have an adverse financial effect on the company, which reported revenue of $451 million for the second quarter of this year, up from $350 million in the same period last year. The behavioral healthcare provider's CEO, Joey Jacobs, said it expects that the hold placed by the state of Illinois will be lifted from Riveredge soon.
To learn more about the situation:
- read this Modern Healthcare article (reg. req.)