UPMC and Washington Health affiliation finally official
UPMC will invest at least $300 million over 10 years to enhance clinical services and upgrade facilities.
Photo: Courtesy UPMC
UPMC is acquiring Washington Health Care Services in Pennsylvania, having reached an Integration and Affiliation Agreement with the Pennsylvania attorney general.
Washington Health System in Washington, Pennsylvania, made the announcement Saturday that it has officially joined UPMC. Its flagship 278-bed Washington Hospital in Washington, along with a 49-bed hospital in rural Waynesburg, Pennsylvania, will now be known as UPMC Washington and UPMC Greene.
UPMC Washington and UPMC Greene will maintain a local board of directors consisting of 11 legacy WHS board members and five newly appointed members from UPMC.
The affiliation does not affect community members' in-network access to WHS hospitals or doctors. UPMC Washington, UPMC Greene and their affiliated outpatient facilities will continue to honor the contracts that are in place with regional and national insurers, Washington Health said.
As outlined in the Assurance of Voluntary Compliance reached with the state, the renamed hospital entity must negotiate with any willing health insurance plans and commit to a single, last best offer arbitration, to resolve any disputed contract terms.
Further, UPMC Washington is prohibited from imposing any anti-tiering, anti-steering, gag clauses, most-favored nation clauses, exclusive contracting and all-or-nothing clauses in its new contracts with health insurance plans.
Many of these clauses are generally found in hospital contracts that require doctors and other staff to be bound by restrictive health insurance contracts.
UPMC Washington also may not expressly limit a health insurance plan's ability to contract with any other healthcare providers. Preventing these contracting terms is expected to enable health plans to offer their subscribers more affordable, in-network access to UPMC Washington's providers, the health system said.
Additionally, UPMC will continue to honor all existing employment contracts, subject to legal requirements, and may not impose any noncompete agreements more restrictive than those that currently exist within Washington Health Care Services.
WHY THIS MATTERS
The Office of the Pennsylvania Attorney General and Washington Health Care Services reached an Assurance of Voluntary Compliance that addresses the AG's concerns about the transaction's potential impact on patients, staff and the community, which the AG's office released on May 30.
UPMC has committed to invest at least $300 million over 10 years to enhance clinical services and upgrade facilities at UPMC Washington and UPMC Greene.
These investments, combined with WHS Foundation contributions, ensure UPMC Washington and UPMC Greene can provide healthcare for local residents and maintain its position as one of the largest employers in Washington and Greene counties, WHS said.
Clinical collaborations between WHS and UPMC for oncology (UPMC Hillman Cancer Center joint venture), pediatric specialties (UPMC Children's Hospital of Pittsburgh), women's health (UPMC Magee-Womens) and heart and vascular care (UPMC Heart and Vascular Institute), have been in place for more than a decade, providing care for more than 10,000 patients annually, WHS said.
UPMC will continue to invest in and advance key services locally, including inpatient and emergency care, women's health, cardiology, surgical services, diagnostics, primary care, and specialty and outpatient services.
THE LARGER TREND
The proposal has been in the works at least since June 2023, when both parties signed an affiliation agreement.
This past April, Pennsylvania legislators pushed for UPMC-Washington Health merger approval, to prevent WHS from closing due to financial issues.
ON THE RECORD
"We are elated that the affiliation is complete and look forward to starting a new chapter of collaboration with UPMC," said Brook Ward, president of UPMC Washington and UPMC Greene. "This affiliation protects the vitality of an essential community asset and solidifies a healthy future for Washington and Greene counties for generations to come."
"UPMC has a long, successful track record of affiliations with like-minded organizations. We know how essential these hospitals are to this region to preserve needed healthcare services and livelihoods of thousands touched by them, and we are thrilled to welcome UPMC Washington and UPMC Greene to UPMC," said Leslie C. Davis, president and CEO of UPMC.
"This transaction will keep Washington Hospital open and available to thousands of Pennsylvanians," Pennsylvania Attorney General Henry said. "It is essential that the transaction promotes the interests of patients, hospital employees, and the community. My office did a comprehensive review and reached this agreement with UPMC and Washington Health Care Services to ensure those protections are in place."
Email the writer: SMorse@himss.org
