Universal Health Services ($UHS) stock sank following an incriminating Buzzfeed report. The report suggested that the company may have been abusing the patients to maximize it profits. The company has refuted the report claiming that the conclusions drawn by the report “are contrary to the factual record and UHS policies and practices.” The health care company also said that the report is based on anecdotal accounts and personal perspectives.
Universal Health Services has more than 200 psychiatric centers in the United States. It derived revenue of nearly $7.5 billion through inpatient care last year. According to Buzzfeed, investigation took a year to conclude and involved interviewing 175 former and current staffers of the company. It also featured additional 120 interviews with patients, government investigators and other experts.
The report claimed that “Current and former employees from at least 10 UHS hospitals in nine states said they were under pressure to fill beds by almost any method.” In many cases, the efforts involved exaggerating the symptoms or mutilating the words of patients to make them seem suicidal
Following the release of the report, the stock tumbled down to $109.70. It finally closed at $11.36. The company is reported to have lost nearly $1.6 billion of its market capitalization.