Practice Management News

UPMC, Washington Health System Sign Letter of Intent to Affiliate

After decades of collaboration between the organizations, the letter of intent establishes plans for Washington Health System to integrate into the UPMC system.

UPMC, Washington Health System, letter of intent, acquisition

Source: Getty Images

By Victoria Bailey

- The University of Pittsburgh Medical Center (UPMC) has signed a letter of intent to acquire Washington Health System (WHS), a move that will help WHS maintain patient access to high-quality care.

The WHS and UPMC Boards of Directors both signed the non-binding letter of intent agreeing to the conditions of an affiliation between the two health systems. Per the agreement, WHS would integrate into the UPMC system.

In 2022, the WHS Board of Directors requested proposals to affiliate with a larger healthcare provider that could help improve its services and clinical offerings. The Board sought an affiliation that would allow WHS to continue providing quality care to Washington and Greene Counties in Pennsylvania.

WHS employs over 2,000 medical professionals and operates a 278-bed hospital in Washington, PA, and a 49-bed hospital in Waynesburg, PA. Additionally, WHS provides clinical care at over 40 off-site locations and operates outpatient care facilities and diagnostic centers.

On June 1, 2023, the WHS Board of Directors unanimously voted to enter affiliation discussions with UPMC.

“Our primary focus is to ensure the residents of Washington and Greene Counties have local access to high-quality health care that is sustainable into the future,” Brook Ward, president and chief executive officer of WHS, said in the press release.

“After careful consideration and analysis, we believe the best path forward is to affiliate with UPMC to achieve that goal. We currently have numerous clinical arrangements and joint ventures with UPMC, which have provided our patients with exceptional care over the years. 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.”

Nonprofit healthcare provider UPMC employs over 95,000 staff members, providing care for patients across 40 hospitals and 800 doctors’ offices and outpatient sites in Pennsylvania, New York, Maryland, and overseas.

Over the past few decades, WHS and UPMC have worked together to improve access to cancer care, specialty pediatric care, vascular surgery services, neonatal care, senior care, and maternal healthcare.

In addition, WHS Washington Hospital was one of the original members of the UPMC Health Plan when it launched 26 years ago, the press release noted.

“The Board and senior leadership of WHS have realized, that in today’s healthcare environment, we need to consider the long-term stability of our health system to continue to provide the quality healthcare services our local residents have come to expect,” said Dan Miller, chairman of WHS Board of Directors. “With that goal, we are excited to be able to affiliate with UPMC, a premier integrated health care system, to continue our mission of Great Patient Care.”

The health systems will engage in due diligence, research, and discussions over the next several months to reach a definitive agreement. WHS and UPMC said they hope to complete the acquisition as soon as possible. The deal is subject to customary regulations.