Former Psych Solutions COO lands at HCA

Local analyst warns of competitive threat to Franklin-based industry leader

Email | Print By Erin Lawley

Terrance Bridges, who recently resigned as co-chief operating officer of Psychiatric Solutions, has re-emerged at HCA.

As of today, Bridges is vice president of behavioral health services for the Nashville-based hospital company. He will be responsible for “enhancing the current operations” of HCA’s 50-odd behavioral health programs, according to spokesman Ed Fishbough.

A research report issued this morning by Nashville-based Avondale Partners notes Bridges’ move may signal an emerging competitive threat for Franklin-based behavioral health powerhouse Psych Solutions (Ticker: PSYS).

“While we view the potential entry of a new competitor as a modest negative, it is too early to know how it might manifest itself and thus, what the true threat is to PSYS,” wrote Senior Research Analyst Kevin Campbell.

If HCA were to expand its behavioral health footprint via acquisitions, it could take away deals from Psych Solutions, Campbell wrote. Additionally, “another buyer in the market may drive multiples higher, limiting the potential accretion from deals.”

Campbell's note from this morning echoes an August 2008 note by Deutsche Bank analyst Darren Lehrich, who suggested HCA would be very deliberate in expanding big time into behavioral hospitals.

Bridges isn’t the first Psych Solutions executive to make the switch to HCA. William Rutherford, chief financial officer of HCA’s outpatient services group, returned to the hospital giant in 2007 after serving as Psych Solutions’ COO for about a year and a half. Before that, he'd spent two decades at HCA.