Certificate of Need Affirmed for South Sound Behavioral Hospital

Department of Health Review Officer Issues Final Order

The Washington State Department of Health’s Review Officer issued a final order that affirmed South Sound Behavioral Hospital’s Certificate of Need for 75 psychiatric beds in all respects. Providence St. Peter Hospital, a competing provider, appealed the Certificate of Need. However, the Review Officer affirmed the Certificate of Need over Providence’s objections.

“We are pleased with the Review Officer’s ruling,” said Richard Kresch, M.D., President and CEO of US HealthVest. “We were granted the Certificate of Need in July 2016; however, implementation has been delayed by 17 months due to Providence’s opposition. We look forward to finally opening this new psychiatric hospital that will address the critical shortage of psychiatric services in the area.”

Located in the Woodland Square District in Lacey, Washington, the hospital will provide behavioral health and addiction treatment services to children, adolescents, adults and senior adults. Comprehensive services will include free 24/7 assessments, inpatient and intensive outpatient care. The hospital has gained widespread public support. Thurston County and surrounding areas are experiencing a severe shortage of behavioral services, forcing many patients to leave the area for treatment.

US HealthVest will invest over $23 million to develop South Sound Behavioral Hospital. US HealthVest will transform a currently vacant building into a state-of-the-art hospital with open spaces with daylight and direct views of nature, enabling for a safe and nurturing environment. The hospital will bring over 200 jobs to the area and will revitalize the Woodland Square District.

Providence St. Peter Hospital and its partner, Universal Health Services (NYSE: UHS), have submitted a Certificate of Need to develop a competing psychiatric hospital. However, their Certificate of Need has been rejected by the Washington State Department of Health. Providence has until November 30, 2017 to decide if it will continue the appeal of US HealthVest’s Certificate of Need.


About US HealthVest

US HealthVest is a leading provider of behavioral healthcare services. US HealthVest operates Smokey Point Behavioral Hospital, Chicago Behavioral Hospital, Ridgeview Institute and Ridgeview Institute – Monroe and is developing additional psychiatric hospitals across the country. Accredited by The Joint Commission, US HealthVest’s hospitals provide specialized psychiatric care to patients with a full range of inpatient and outpatient services for children, adolescents, adults and senior adults. US HealthVest was founded in 2013 by Dr. Richard Kresch, formerly Founder & CEO of Ascend Health Corporation and Heartland Health Developments. For more information, please visit www.ushealthvest.com.

Richard Kresch, M.D.
President and CEO
US HealthVest