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Push to privatize troubled hospital could hide problems from view

By Andrea Ball - American-Statesman Staff



State leaders have quietly taken steps over the past year to privatize a troubled psychiatric hospital, a move that, if successful, could hide much of its work from public view.

Earlier this month, the Department of State Health Services solicited bids to operate Terrell State Hospital, a Northeast Texas psychiatric facility that houses about 250 people with severe mental illnesses. The hospital came close to losing millions of dollars in federal funding last year after Medicare investigators said widespread problems threatened patients’ lives.

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