EXHIBIT 99.1

PSYCHIATRIC SOLUTIONS, INC.
[PSI LOGO]

CONTACT:
Brent Turner
Vice President, Treasurer and
Investor Relations
(615) 312-5700

          PSYCHIATRIC SOLUTIONS INCREASES REVOLVING CREDIT FACILITY TO
                    $150 MILLION AND LOWERS BORROWING COSTS

FRANKLIN, Tenn. (December 21, 2004) - Psychiatric Solutions, Inc. ("PSI")
(NASDAQ: PSYS) today announced that it has amended and restated its revolving
credit facility with a syndicate of lenders led by Bank of America, increasing
the facility's size to $150 million from $125 million. In addition, the
amendment extends the term of the facility to five years from three years and
lowers PSI's expected borrowing costs, as a result of a lower interest rate and
reduced ongoing fees related to the amended facility.

      Commenting on the announcement, Joey Jacobs, Chairman, President and Chief
Executive Officer of PSI, said, "We are pleased to announce the expansion of our
revolving credit facility, which increases our financial flexibility and lowers
our costs. Through the combined effect of this expanded facility and our equity
offering last week, we have strengthened our financial position and
significantly enhanced our ability to fund our growth strategies for the
foreseeable future."

      This press release contains forward-looking statements within the meaning
of the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include statements other than those
made solely with respect to historical fact and are based on the intent, belief
or current expectations of PSI and its management. PSI's business and operations
are subject to a variety of risks and uncertainties that might cause actual
results to differ materially from those projected by any forward-looking
statements. Factors that could cause such differences include, but are not
limited to: (1) potential competition which alters or impedes PSI's acquisition
strategy by decreasing PSI's ability to acquire additional

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PSYS Increases Revolving Credit Facility
Page 2
December 21, 2004

inpatient facilities on favorable terms; (2) the ability of PSI to improve the
operations of acquired inpatient facilities; (3) the ability to maintain
favorable and continuing relationships with physicians who use PSI's facilities;
(4) the ability to receive timely additional financing on terms acceptable to
PSI to fund PSI's acquisition strategy and capital expenditure needs; (5) risks
inherent to the healthcare industry, including the impact of unforeseen changes
in regulation, reimbursement rates from federal and state healthcare programs or
managed care companies and exposure to claims and legal actions by patients and
others; and (6) potential difficulties in integrating the operations of PSI with
recently acquired operations. The forward-looking statements herein are
qualified in their entirety by the risk factors set forth in PSI's filings with
the Securities and Exchange Commission, including the factors listed in
Amendment No. 1 to the Company's Registration Statement on Form S-3, filed with
the Securities and Exchange Commission on December 14, 2004, under the caption
"Risk Factors." PSI undertakes no obligation to update any forward-looking
statements, whether as a result of new information, future events or otherwise.
Readers should not place undue reliance on forward-looking statements, which
reflect management's views only as of the date hereof.

      PSI offers an extensive continuum of behavioral health programs to
critically ill children, adolescents and adults through its operation of 34
owned or leased freestanding psychiatric inpatient facilities with more than
4,000 beds. PSI also manages freestanding psychiatric inpatient facilities for
government agencies and psychiatric inpatient units within medical/surgical
hospitals owned by others.

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