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Published in Health Care

Mercy Health forms joint venture for new psychiatric hospital in Kent County

BY Wednesday, March 31, 2021 04:28pm

Mercy Health and an Auburn Hills-based operator of psychiatric hospitals plans to build a new facility in Kent County through a joint venture.

Havenwyck Hospital Inc. — an affiliate of Pennsylvania-based Universal Health Services Inc. — received tentative state certificate of need approval this week for a 60-bed adult inpatient  psychiatric hospital near Mercy Health’s Southwest Campus at Byron Center Avenue and M-6.

The new psychiatric hospital will have room for 24 additional inpatient beds for geriatric psychiatric patients and for future expansion.

Mercy Health and Havenwyck intend to work out a final agreement on the joint venture in the coming months once the Michigan Department of Health and Human Service issues a final certificate of need for the project. The two companies began talking about a joint venture as Havenwyck filed for state approval last October and went through the state’s certificate of need review process.

Construction on the new hospital could begin later this year with an opening targeted for the spring of 2023.

In announcing the joint venture today, Mercy Health said the demand for mental care has been increasing for years. The COVID-19 pandemic “has exacerbated the need for inpatient psychiatric capacity for all populations in the region,” according to the health system.

“The need is here and growing,” Dr. Matthew Biersack, interim president and chief medical officer at Mercy Health Saint Mary’s in Grand Rapids, said in a statement. “The shortage of mental health resources is a national issue. Approval of the (certificate of need) application is a positive step forward on our journey to expand access and options serving more patients in Kent county and surrounding communities.”

Mercy Health Saint Mary’s provides behavioral health care through an inpatient unit, outpatient and ambulatory care sites, and tele-psychiatry programs.

A large for-profit, publicly held provider of medical and mental health care, Universal Health Services (NYSE: UHS) operates 26 acute care hospitals, 330 behavioral health facilities, 41 outpatient and ambulatory care facilities in 37 U.S. states, Washington, D.C., Puerto Rico and the United Kingdom.

The corporation’s hospitals include Forest View Hospital in Grand Rapids, a psychiatric facility with 77 adult beds and 31 beds for children and adolescents, plus four other facilities in Michigan.

Universal Health Services reported 2020 net revenue of nearly $11.6 billion with $943.9 million in net income.

“Mercy Health is an outstanding provider of critically needed services in West Michigan. Our missions are aligned, and we share a deep commitment to expand access to compassionate care and treatment for all populations,” Diane Henneman, divisional vice president for behavioral health at Universal Health Services, said in a statement.

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