Massachusetts system ends venture with US HealthVest after Seattle Times investigation

A health system in Massachusetts ended plans to operate a new psychiatric hospital with US HealthVest, a company specializing in mental-health care whose expansion in Washington state has drawn regulatory scrutiny for repeated violations.

Baystate Health, based in Springfield, Massachusetts, first signaled in late August it was reviewing its relationship with US HealthVest, two days after the company was the subject of a Seattle Times investigation. On Wednesday, Baystate, told employees in a memo that it and US HealthVest “have mutually agreed not to move forward” with plans to jointly run a psychiatric hospital in Western Massachusetts.

A Baystate spokeswoman declined to elaborate on the health system’s decision. Richard Kresch, US HealthVest’s chief executive, didn’t respond to a request for comment.

US HealthVest has been at the vanguard of a major expansion of mental-health care in Washington state by private companies. The for-profit, New York-based firm proposed three psychiatric hospitals and ultimately won approval to build two: Smokey Point Behavioral in Marysville and South Sound Behavioral in Lacey, adding more than 200 inpatient beds.

Read more: https://www.seattletimes.com/seattle-news/times-watchdog/massachusetts-system-ends-venture-with-us-healthvest-after-seattle-times-investigation/