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HCA’s possible psychiatric expansion raises concerns

The Tennessean, August 20, 2008

Deutsche Bank analyst Darren Lehrich recently raised eyebrows by mentioning the possibility that hospital operator HCA Inc. might expand its psychiatric care offerings soon. Lehrich said he had word that Nashville-based HCA was assembling a team to develop a larger portfolio in that niche. There are concerns, however, including that HCA's plans will increase competition for smaller acquisitions of behavioral health hospitals or for personnel, thus driving up costs for competitors.