Universal Health Services Stock Drops 5% After Report Of FBI, Defense Department Investigation

Universal Health Services Inc. shares dropped 4.9% in premarket trade Wednesday after BuzzFeed News reported that a federal investigation into the company now includes the FBI and Department of Defense. The subject of the investigation is whether the hospital management company, which is the largest behavioral health provider in the U.S., keeps patients at its psychiatric facilities for too long to increase revenues, according to BuzzFeed News. Universal Health Services has previously denied BuzzFeed News reports of improper patient treatment at its psychiatric facilities. Universal Health Services shares have dropped 5.7% over the last three months, compared with a 1.3% rise in the S&P 500 .