Glass group to buy Oakview Treatment Center Ellicott City facility treats substance abuse

April 09, 1996|By M. William Salganik | M. William Salganik,SUN STAFF

The Glass Mental Health Foundation of Baltimore yesterday bought the Oakview Treatment Center, a 56-bed substance abuse facility in Ellicott City, for $2.2 million from Mental Health Management of McLean, Va.

The foundation is "the nonprofit arm of Glass Mental Health Systems," said President Michael Glass. The foundation also operates an emergency mental health service in Baltimore County.

Glass Mental Health Systems has two inpatient psychiatric facilities collectively known as Gundry-Glass Hospital -- 56 beds at Harbor Hospital and 29 beds in Southwest Baltimore. It also has a number of outpatient offices in the area and manages, on a contract basis, psychiatric units at Liberty Medical Center, Carroll County General Hospital and Union Hospital in Elkton.

Mr. Glass said the Glass group has been "very active in substance abuse, and we need an inpatient facility." In particular, he said, he is interested in offering treatment for adolescents who have other psychiatric problems in addition to substance abuse.

Ned Rubin, director of marketing for Glass, said "a majority" of the Oakview staff would be retained.

Mental Health Management has had severe financial difficulties. In January, it announced plans to sell off its facilities, shifting its business to managing the practices of nonphysician mental-health workers.

Also in January, the company said its auditors questioned its ability to survive.

Mental Health Management stock closed yesterday at $1.63, down 13 cents. It had traded as high as $3.75 a share in September, but dropped sharply, hitting a low of $1 a share after the January announcements. The company blamed its problems declining rates of inpatient treatment and on a squeeze in reimbursement rates.

Mr. Glass said that despite the difficulties faced by Mental Health Management, "there's always going to be a need for inpatient services for the more acute patients. There aren't a lot of facilities, and we anticipate filling that gap."

Pub Date: 4/09/96

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