HEALTH

NME to Close Psychiatric Hospital: Santa Monica-based National Medical Enterprises announced that it will close Colonial Hills Hospital in San Antonio in the wake of investigations by the Texas attorney general into alleged abuses in billing and patient admissions at the psychiatric facility. The chain earlier this week said it would close Lake Hospital in Lake Worth, Fla. The two hospitals are the first of an undisclosed number of NME’s 88 psychiatric hospitals and substance abuse centers that the Santa Monica-based chain is planning to sell, convert or close because of adverse publicity and declining payments by insurers aiming to control health care costs. Last month, the company announced that it would take a $250-million pretax write-off in the quarter ending May 31 to cover the costs of closing the facilities.