For-profit companies open psychiatric hospitals in areas clamoring for care

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The scarcity of inpatient psychiatric care is evident nationwide, especially in rural areas.

Clive Behavioral Health Hospital, in suburban Des Moines, Iowa, is run by the national company Universal Health Services in partnership with MercyOne, a local hospital system. The facility has 100 inpatient beds, but its chief executive officer says it has been using only about half of them, because of staffing challenges.

The latest Iowa psychiatric hospital would be housed in a vacant nursing home on the outskirts of Grinnell, a college town of 9,500 people in a rural region of the state. The project’s developers noted there are no other inpatient mental health facilities in Poweshiek County, where Grinnell is located, or in any of the eight surrounding counties. The nearest inpatient mental health facilities are 55 miles west in Des Moines.

Durkin denied in the interview that her organization was associated with the company that ran the defunct and troubled Grinnell nursing home. The company predicted in its application that 90% of the hospital’s patient revenues would come from Medicare or Medicaid, public programs for seniors or people who have low incomes or disabilities. It doesn’t mention that the nursing home was suspended from Iowa’s Medicaid program, which covers about half of the state’s nursing home residents.

The only opposition at the state hearing came from Kevin Pettit, leader of one of Iowa’s two other private free-standing psychiatric hospitals. Pettit is chief executive officer of Clive Behavioral Health Hospital, a 100-bed facility in suburban Des Moines that opened in 2021. Pettit told regulators he supports expanding mental health services, but he predicted the proposed Grinnell facility would struggle to hire qualified employees.

 

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