US owner of healthcare firm The Priory Group eyes £1bn sale amid scandal over quality of care
The US healthcare firm behind The Priory Group is mulling a £1bn sale of the mental healthcare provider amid a scandal over the quality of care in its hospitals.
Acadia Healthcare has appointed a financial adviser to explore a possible sale of the firm, the Mail on Sunday reported, citing City sources.
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The Priory Group operates over 450 private and NHS facilities treating people with addiction and mental health problems. Its clinic in Roehampton is famous for treating celebrities including Kate Moss, Robbie Williams and Paul Gascoigne.
But the company, which holds roughly £720m in government contracts, has been hit by a string of recent scandals over the quality of care at its institutions.
Earlier this month The Priory Group was handed down a £300,000 fine over the death of a 14-year-old girl who was found hanged while in the care of a Priory hospital near Tunbridge Wells in 2012.
An undercover investigation carried out by ITV also exposed a litany of failings at the hospital group, including numerous suicide attempts and a teenager who spent weeks wearing only a blanket.
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Acadia bought The Priory Group for £1.3bn in 2016 from private equity firm Advent International. The motivation behind the sale is not clear, but the firm and its advisers have been making informal enquiries, according to sources.
Acadia Healthcare could not be reached for comment.