Southwest Regional to become part of Washington Health System
Health care services in Washington and Greene counties will forge a greater bond this summer.
Officials of Southwest Regional Medical Center said Monday its current owner RegionalCare Hospital Partners reached a tentative agreement with Washington Health System for the Waynesburg-based health care facility to become part of WHS.
The transaction, which ensures Greene County residents will continue to have access to local, community-based health care services, is expected to be completed July 1.
WHS Chief Executive Officer Gary Weinstein said following Monday’s announcement the proposed merger makes sense from a strategic standpoint.
The agreement, which is subject to regulatory approval and due diligence by the three parties, occurred as Brentwood, Tenn.-based RegionalCare, an operator of nonurban hospitals in nine markets across the United States, is moving toward larger medical facilities in its portfolio.
“They reached out to us, and it was a really great fit for us,” Weinstein said. He noted WHS already has numerous service offerings in Greene County, including a family medicine practice, OBGYN practice and outpatient services including laboratory draws and ultrasound. Its WHS Cardiovascular Practice operates inside SRMC for both outpatient and inpatient service, he said.
“Southwest Regional Medical Center and Washington Health System have historically been the leading providers of health services to Greene County residents,” he said. “The proposed transaction will enable the physicians and other health professionals at both organizations to coordinate care for these residents more effectively and efficiently.”
Under the proposal, Weinstein said WHS will commit about $1 million for facility and information technology improvements. He said about $800,000 of the total amount will be spent to acquire the medicine and supply inventory at SRMC.
Current SRMC CEO Cynthia Cowie will remain through the transition period. Weinstein said WHS has named Terry Wiltrout, former CEO of Canonsburg Hospital, to lead SRMC once the merger is complete.
Weinstein said a new name for the Waynesburg facility hasn’t been determined.
“We live in a rapidly changing health care environment and new regionally focused alignments like this are becoming imperative to the delivery of care in local communities,” Cowie said in a statement.
“Over the last several months, the leaders of all three involved parties determined that the best way to ensure a strong future for the delivery of health care in Greene County would be for Southwest Regional Medical Center to align with another local health system. We believe this new partnership with Washington Health System will allow for continued access to care for Greene County residents. We are excited about the many possibilities.”
WHS, which employs more than 2,000 medical professionals, operates its flagship 260-bed Washington Hospital as well as Greenbrier Treatment Center and hospice care. It has more than 40 off-site locations in three counties.
Weinstein said the proposed merger will ensure “Greene County residents have greater assurance that health services will continue to be provided in the county by a local entity, Washington Health System, whose mission has always included patient care to area residents.”
As part of the proposed transaction, WHS intends to continue providing the services that are currently available at Southwest Regional and for current employees to continue providing those services to the community.
SRMC, which has 49 beds, offers 24-hour emergency services, a full range of diagnostic imaging specialties, a fully accredited laboratory, cardiology services, hyperbaric wound care and home health services.
Weinstein said WHS will honor existing union contracts at SRMC.
Service Employees International Union Healthcare Pennsylvania, which represents about 150 registered nurses, technicians and services workers at Southwest Regional and 400 service and maintenance workers at Washington Hospital, said in a news release it views the merger “as a potentially positive development that could create more community-centered, streamlined care.”
“Washington Hospital is a not-for-profit health care system that has shown their commitment to being a local provider invested in the community,” said Zach Zobrist, executive vice president of SEIU Healthcare Pennsylvania. “We look forward to – and expect – that they will continue to employ those same standards for exceptional care and family-sustaining jobs to the hardworking men and women at Southwest Regional Medical Center who provide important care and services to Greene County each and every day.”
Sheila Stewart, chairman of Greene County Memorial Hospital Foundation, said her board “is committed to providing access to quality health care. This exciting new collaboration will further strengthen the footprint for health care here in Greene County.”
According to the news release, some key benefits from the proposed agreement include:
• Greater alignment and connectivity between physicians and physician groups at WHS and SRMC, resulting in better coordinated care for residents of Greene County.
• Quality care initiatives developed by WHS and Washington Physician Hospital Organization that will be available to SRMC and local physician practices.
“By becoming part of a regional system, patients from Greene County will have both a strong local hospital and more convenient access to a broader range of services and health care providers,” said Jay Hammers, chair of the SRMC board.
State Rep. Pam Snyder, D-Jefferson, applauded the acquisition and said it appeared to be a positive move for the Waynesburg area.
While she was unable to attend Monday afternoon’s meeting between Washington Health System and community officials, Snyder said she expects job losses to be “minimal” and the partnership would expand health care services.
“I believe this will be in the long-term best interests of the region and health care for Greene County’s residents,” Snyder said. “We need this medical facility in Greene County. It’s imperative. Without it would be devastating.”
Greene County Bureau Chief Mike Jones contributed to this story.