WVU Health System agrees to patient, insurance protections
West Virginia University Health System has agreed to keep Independence Health System hospital open for at least five years and negotiate in good faith with insurance plans in an “Assurance of Voluntary Compliance” settlement with the state.
Pennsylvania Attorney General Dave Sunday said Wednesday, Sept. 2, the settlement that will protect patients, physicians and health plans potentially impacted by WVU Health System’s acquisition of Independence Health System.
In November 2025, WVU Health System announced plans to acquire the system and its five hospitals, including Butler Memorial Hospital, which serve nearly one million people across several counties in Western Pennsylvania.
Advocating for patients, the Office of Attorney General’s Public Protection Division reviewed the transaction and reached a number of conditions agreed to by WVU Health in the form of an Assurance of Voluntary Compliance filed in court this week.
Among the key conditions are agreements that Independence hospitals and facilities will remain open for at least five years and contracts with health insurance plans will be negotiated in good faith.
The settlement agreement, filed Aug. 31 in Commonwealth Court, requires WVU Health System to maintain services at BMH, Clarion, Westmoreland, Frick and Latrobe hospitals; Benbrook Medical Center, BMH Crossroads Campus, Clarion Health and Wellness Center, Laurel Surgical Center, Medical Commons One through Five, South Butler Commons, The Square at Norwin, The Square at Latrobe and The Square at Connellsville for at least five years.
The settlement also requires WVU to provide notice to the Office of Attorney General of any significant changes in services.
If WVU Health System doesn’t continue operating the clinical services, behavioral health and obstetrics programs during the five-year period, which began Aug. 31, it is required to provide a 120-day notice to the Attorney General’s Charitable Trust and Organizations section.
The settlement comes with several other stipulations that require WVU Health to maintain services to patients who would be affected by its acquisition of Independence Health. The system must negotiate in good faith with health insurance plans with a last best offer binding arbitration backstop if needed; maintain charity care and financial assistance; and cannot terminate any existing contracts without cause, among other stipulations.
