News
UPMC and Washington Health affiliation finally official
UPMC is acquiring Washington Health Care Services in Pennsylvania, having entered into an Integration and Affiliation Agreement with the Pennsylvania Attorney General.
Washington Health System in Washington, Pennsylvania, made the announcement Saturday that he 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 comprised of 11 legacy WHS board members and five newly appointed members from UPMC.
Affiliation does not affect community members’ in-network access to WHS hospitals or physicians. UPMC Washington, UPMC Greene and their affiliated outpatient facilities will continue to honor existing contracts with regional and national insurers, Washington Health said.
As described in Voluntary compliance assurance reached with the state, the renamed hospital entity must negotiate with any willing health insurance plans and commit to a one-time, last-best-offer arbitration to resolve any disputed contract terms.
Additionally, UPMC Washington is prohibited from imposing any anti-tiering, anti-steering, gag, most-favored-nation clauses, exclusive contracting and all-or-nothing clauses in its new contracts with health insurance plans.
Many of these clauses are commonly found in hospital contracts that require doctors and other employees to be bound by restrictive health insurance contracts.
UPMC Washington also cannot expressly limit a health insurance plan’s ability to contract with any other health care provider. The avoidance of these contracting terms is expected to allow health plans to offer their subscribers more affordable in-network access to UPMC Washington providers, the health system said.
Additionally, UPMC will continue to honor all existing employment contracts, subject to legal requirements, and may not impose any non-compete agreements more restrictive than those that currently exist on Washington Health Services.
WHY DOES IT MATTER
The Pennsylvania Attorney General’s Office and Washington Health Services have reached a Voluntary Compliance Assurance that addresses the Attorney General’s concerns about the transaction’s potential impact on patients, employees and the community, which the Attorney General’s Office -General released on May 30th.
UPMC has committed to investing at least $300 million over 10 years to improve clinical services and upgrade facilities at UPMC Washington and UPMC Greene.
These investments, combined with contributions from the WHS Foundation, ensure that UPMC Washington and UPMC Greene can provide health care to local residents and maintain their 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 to more than 10,000 patients annually, WHS said.
UPMC will continue to invest in and promote essential services locally, including inpatient and emergency care, women’s health, cardiology, surgical services, diagnostics, primary care, and specialty and outpatient services.
THE BIGGEST TREND
The proposal has been in the works since at least June 2023, when both parties signed an affiliation agreement.
Last April, Pennsylvania lawmakers pushed for approval of the UPMC-Washington Health merger, to avoid closing WHS due to financial issues.
ON REGISTRATION
“We are excited to complete the affiliation and look forward to beginning 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 and successful history of affiliations with like-minded organizations. We know how essential these hospitals are to this region to preserve needed health services and the livelihoods of thousands of people touched by them, and we are excited 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,” said Pennsylvania Attorney General Henry. “It is essential that the transaction promotes the interests of patients, hospital employees and the community. My office performed a comprehensive review and reached this agreement with UPMC and Washington Health Services to ensure these protections are in place.” “
Send an email to the writer: SMorse@himss.org