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WVU agreement with state AG good news for area

Pennsylvania Attorney General Dave Sunday deserves the thanks of Butler County residents for his actions to keep Butler Memorial Hospital and the four other hospitals under Independence Health System’s umbrella open, at least for now, after acquisition by West Virginia University Health System.

Sunday negotiated a voluntary compliance settlement with WVU Medicine in which the system pledges to keep Butler Memorial, Clarion, Westmorland, Frick and Latrobe hospitals, as well as affiliated clinics and wellness centers, open for at least five years after the final sale scheduled for next month.

It’s understandable why Independence Health System decided to join with WVU Medicine. Massive local health providers and insurers such as UMPC and Highmark generated fierce market competition. WVU Medicine has promised to invest $800 million to upgrade the facilities at Independence Health System’s five hospitals.

This is at a time when, according to the U.S. Department of Agriculture’s Economic Research Service, between 2005 and 2023, 146 hospitals in rural U.S. counties closed or stopped providing short-term acute inpatient care. Independence Health System’s five hospitals serve a population of nearly 1 million across several Western Pennsylvania counties encompassing large swaths of rural area.

Sunday’s voluntary compliance settlement means none of those hospitals will be in danger of closing for the next five years and that protects their patients and physicians.

The two health systems have said their deal will expand services and access to specialty care in Western Pennsylvania. They also pointed to the sale bringing about financial efficiencies.

Now WVU Medicine has promised financial efficiencies won’t be brought about by closing any of the newly acquired hospitals or associated clinics and healthcare centers any time soon.

The settlement also requires the system to provide advance notice to the attorney general of any significant change in services.

The acquisition is a good deal for the five affected hospitals because it will bring an influx of capital. The attorney general’s agreement is a good deal for local patients and physicians ensuring they won’t be blindsided by unexpected closures or curtailment of services.

EF

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