Geo Care Sells Atlantic Shores Hospital for $12M

FORT LAUDERDALE, FL-Geo Care Inc. agrees to sell the 72-bed Atlantic Shores Hospital at 4545 N. Federal Highway to Franklin, TN-based Psychiatric Solutions Inc. for $11.5 million. The sale price represents approximately $159,722 a bed or $242 per sf. The sale is expected to close on Jan. 1.

The 47,500-sf hospital provides acute care for patients requiring substance abuse and psychiatric treatment, and Geo has operated it since 1997. With the sale of this private hospital, Boca Raton-based Geo continues its focus on the development and management of large-scale mental health and special needs facilities for state and local governments nationwide, according to a statement by George C. Zoley, chairman and CEO.

Atlantic Shores will be Psychiatric Solutions’ second facility here. It also owns and operates a 100-bed facility at 1601 E. Las Olas Blvd. According to a PSI statement, Atlantic Shores is expected to generate approximately $10 million in 2005. “This transaction will enhance the regional presence we have already established…, strengthening our share of this attractive market,” says Joey Jacobs, PSI’s president and CEO, in a statement.

PSI owns or leases 55 psychiatric inpatient facilities aggregating more than 6,400 beds in 27 states. It also manages such freestanding facilities for government agencies and psychiatric inpatient units within hospitals owned by others.