Nashville Post
Front Page

Psychiatric Solutions jump 13% on ‘double bump’

Email | Print By Paige Orr

11-03-2004 4:56 PM — The U.S. Centers for Medicare & Medicaid Services (CMS) has established a prospective payment system for Medicare inpatient psychiatric services that stands to increase payments to Nashville-based Psychiatric Solutions (PSYS). That announcement, combined with the presidential election, served as a “double bump” to the company’s stock price, according to Avondale Partners analyst David Dempsey.

Shares of Psychiatric Solutions closed Wednesday at $28.40, up 13.42%, on more than four times average volume. Their 52-week range is $13.35-$29.04.

The new CMS rule will begin to take effect Jan. 1 and is “definitely a positive” for freestanding inpatient psychiatric facilities, Dempsey said. Psychiatric Solutions operates 34 freestanding facilities. “They’re going to benefit by being a low-cost provider,” Dempsey added.

See related articles:

del.icio.us  post to del.icio.us   What's this?

You must be logged in to comment. If you do not have an account, you can join our esteemed subscribers.


Latest News »

Now Playing Nashville