Jan 19, 2024 5 min read

Karen Mansfield/Observer-Reporter

Brook Ward, president and CEO of Washington Health System, speaks during Thursday’s public hearing.

Representatives of Washington Health System and the University of Pittsburgh Medical Center (UPMC) delivered an explanation of a proposed merger Thursday during a public hearing held by the Office of the Attorney General at Washington & Jefferson College.

Members of the public and others, including elected officials, WHS employees, also spoke, with the vast majority speaking in favor of the deal.

The hearing was divided into two parts, with representatives of WHS and UPMC delivering testimony outlining the deal. Then the hearing was opened to the public.

In his statement, Brook Ward, president and CEO of WHS, outlined the efforts to examine opportunities for WHS to affiliate with another health system, given WHS’ significant financial challenges in recent years.

Ward said that despite the desire of the health system’s board of directors to remain independent, national consultants recommended the best option for WHS to survive was “to grow through acquisition or affiliation with another health care organization,” he said.

State Rep. Tim O’Neal said he was “not necessarily happy that Washington Health System is going to lose its independence” through the deal, but “the fact of the matter is, the system is in trouble, the system is hurting from a financial standpoint.”

In the last fiscal year, the health system lost about $22.5 million, and is on pace to lose $34.5 million this year. It is facing losses exceeding $40 million next fiscal year, Ward said.

After the board determined it was not feasible to remain independent, it submitted a request for proposals to affiliate with a larger health care provider and reviewed proposals from multiple bidders.

“The consensus was that the relationship with UPMC would bring the most benefit to our community,” said Ward, noting WHS and UPMC have collaborated in several areas, including clinical partnerships, for the past several decades.

According to the terms of the agreement, UPMC will invest a minimum of $300 million in capital in WHS over the next decade and continue all key WHS services, including women’s health, cardiac surgery and other lines of service for a minimum of 10 years.

UPMC has also agreed to maintain Washington Hospital as an inpatient acute care general hospital and core services, such as emergency care, diagnostic, ambulatory, and primary care, in Greene County for at least 10 years.

Dr. Elizabeth Piccione, president of UPMC Jameson in Lawrence County, discussed how the former Jameson Health Sytem’s merger with UPMC in 2016 “saved Jameson Hospital,” enabled the continuation of access to quality health care for the community, and increased services in Lawrence and Mercer counties.

She noted that UPMC committed to invest $85 million in UPMC Jameson over 10 years, but in the first five years invested more than $100 million, and said the region also has enjoyed a substantial economic impact, including employment and revenue from facility infrastructure projects.

“We are delivering an entirely new level of health care,” Piccione said.

She also pointed out that the UPMC Jameson School of Nursing is on pace to graduate 150 nurses in 2024, compared with fewer than 30 nurses before the hospital’s affiliation with UPMC.

Nick Sherman, chairman of the Washington County Board of Commissioners, voiced his support of the merger on behalf of the commissioners. Jeff Kotula, president of the Washington County Chamber of Commerce, also supported the deal.

WHS employees – many wearing maroon T-shirts saying, “I support WHS and UPMC” and “Great patient care deserves a great partner” – also spoke in support of the merger.

Several employees expressed concerns that without an affiliation with UPMC, the health system will be forced to cut services, reduce costs, and cut employees before eventually closing its doors.

Longtime WHS nurse Donna Wilds said she is “supporting and embracing this positive change.”

“Looking forward, I believe there will be profound benefits to integrating into the larger health system of UPMC. The integration or merger will ensure we can keep providing care but will also open the doors for both health care professionals and patients. With this merger we will gain access to advanced medical technology and a larger range of specialized services,” she said.

Said Judy Ziegler, Washington Physicians Group Director of Operations, “WHS and UPMC have communicated the actions and behaviors that are important in realizing shared values and common goals. I believe WHS would only affiliate with an organization who has the same like-minded commitment.”

With more than 2,700 employees, WHS is Washington County’s largest employer.

UPMC operates 40 hospitals – including four regional hubs – and intends to make Washington Hospital a hub and to grow the campus bigger, according to the agreement.

The affiliation is currently being reviewed by the Federal Trade Commission.

According to the Hospital and Health System Association of Pennsylvania, WHS’ economic benefit to Pennsylvania’s economy in 2022 was $525,472,603.