Pennsylvania legislators push for UPMC-Washington Health merger approval
The merger would allow all employees to keep their jobs, pay and benefits, lawmakers say, and prevent WHS from closing.
Photo: Matt Mawson/Getty Images
Members of the Washington County legislative delegation in Pennsylvania have called on the state's governor, Josh Shapiro, to work with the Pennsylvania attorney general to finalize the merger of Washington Health System and University of Pittsburgh Medical Center.
The push is being led by Rep. Tim O'Neal (R-Washington), and backed by Reps. Bud Cook (R-Greene/Washington), Josh Kail (R-Beaver/Washington) and Natalie Mihalek (R-Allegheny/Washington).
CBS News reported that the proposed merger was initially spurred by WHS' financial issues, leaving it little choice but to pursue an affiliation.
Last June, the WHS board voted to sign a non-binding letter of intent to negotiate an affiliation agreement to integrate WHS into the UPMC family. In late 2022, the WHS board submitted a request for proposals to affiliate with a larger healthcare provider that could enhance its services and clinical offerings.
The merger would allow all employees to keep their jobs, pay and benefits, the lawmakers said. Without the merger, they said, Washington Hospital is at risk of closing.
"The UPMC acquisition of Washington Health System will present opportunities to the region, preserving jobs and maintaining services for all patients," said Kail. "We encourage the governor to take a stand in the best interest of the public and help expedite this process because the current situation is not sustainable."
WHAT'S THE IMPACT?
Brook Ward, president and CEO of WHS, said in June 2023 that the focus of the proposed merger is to increase access to high-quality care – and said the affiliation was the best way to achieve that goal.
WHS' board accepted a 10-year agreement with UPMC, requiring the latter to keep all the health system's services and all 2,700 employees. UPMC also has agreed to invest $300 million into WHS.
"We currently have numerous clinical arrangements and joint ventures with UPMC, which have provided our patients with exceptional care over the years," said Ward. "From our experience working with UPMC and knowing their track record of providing outstanding patient care, it was an obvious choice to select UPMC as our partner going forward."
The two organizations have a history of collaboration, including a joint partnership in local cancer treatment, a collaboration with UPMC Hillman Cancer Center and based at WHS Washington Hospital.
Other collaborations include UPMC's Heart and Vascular Institute, providing vascular surgery services throughout WHS' service area; onsite neonatal care, provided at every birth by UPMC Children's Hospital; senior care services, provided at Strabane Trails and Strabane Woods; OB ultrasounds interpretation services by UPMC Magee-Womens Hospital; and additional partnerships in telestroke, Chartwell specialty pharmacy services and Clinical Connect HIE electronic records.
WHS Washington Hospital was also one of the original members of the UPMC Health Plan when it was launched 26 years ago, officials said.
THE LARGER TREND
The Federal Trade Commission and the Justice Department jointly issued new merger guidelines in December, which guide the agencies when reviewing mergers and acquisitions in healthcare and other industries.
The FTC has cited market concentration and its effect on competition in challenging potential health system consolidation.
Both agencies said they presume, unless sufficiently disproved or rebutted, that a merger between competitors that significantly increases concentration and creates or further consolidates a highly concentrated market may substantially lessen competition.
The guidelines are not themselves legally binding, but provide transparency into the agencies' decision-making process, they said.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
