Community Psychiatric to Suspend Dividends

Community Psychiatric Centers on Thursday said it would suspend dividend payments, a move that will generate about $15 million annually that will be used to fund the planned expansion of Transitional Hospitals Corp., a long-term acute care subsidiary. Community Psychiatric said the dividend suspension would produce long-term benefits for shareholders by reducing costs of the planned expansion. Community Psychiatric also said that its U.S. Psychiatric hospital division returned to profitability in March after a cost-reduction program. Community Psychiatric’s shares fell by 50 cents to $10 on Thursday in New York Stock Exchange trading.