Universal Health Services (NYSE: UHS) plans to sell River Crest Hospital, a San Angelo, Texas-based facility, to Shannon Health System, a healthcare provider based in the same city.

The parties did not disclose the terms of the deal. The move expands the nonprofit Shannon Health System’s behavioral health division. Presently, Shannon operates a 22-bed inpatient psychiatric facility for adults and seniors. The acquisition is expected to close in September, according to a news release.

River Crest Hospital operates 80 acute psychiatric beds. The facility has operated for more than 30 years. It offers psychiatric and addiction treatment for adults and children. It also provides care to members of the military.

“This new addition to the Shannon Health System will ensure community members of all ages who struggle with behavioral health and substance abuse issues will have expanded access to specialized care,” Shane Plymell, president and CEO of Shannon Medical Center, said in the release.

Shannon Health System plans to expand the River Crest Hospital, adding 40 beds in two phases, each adding 20 beds. It also plans to upgrade the facility, its equipment and technology.

In 2020, Shannon Medical Center merged with San Angelo Medical Center. In total, the system operates 25 locations and employs about 3,800 people.

“Throughout this process, we have been impressed by the conversations we’ve had with Shannon about the current and future needs of behavioral health in the San Angelo community,” Phuong Cardoza, group director behavioral health at UHS, said in the release. “Joining Shannon will ensure River Crest can continue to meet this critical community need and to invest in our physicians and staff who provide outstanding care every day.”

River Crest Hospital generated $33 million in revenue and 2,656 discharges in 2021, according to the latest data from data.cms.gov. Shannon Health System’s revenue totaled $761 million in the fiscal year ending Sept. 30, 2022, a 10% annual increase, while operating income increased 49% to $29.9 million, according to an audit report.

UHS beat analyst estimates with $3.90 earnings per share in the first quarter, with $266 million in net income, which was up 63% year-over-year. The behavioral health division’s net income was up 19% in the quarter, according to its latest financial disclosures.

UHS has succeeded in improving its payer rates by being tough on its lowest-paying health plan partners. The increased demand for hospital-based services for psychiatric care has also elevated the price of care, according to the company’s CFO Steve Filton.