UPMC, Washington Health System announce merger plans

The University of Pittsburgh Medical Center and Washington Health System said Tuesday they plan to merge.

The nonprofit systems’ boards signed a letter of intent this month agreeing to integrate Washington Health into UPMC, following more research and discussion, according to a news release.

A letter of intent is not legally binding and serves as a precursor to a definitive agreement, which is subject to regulatory approval. If approved, the deal would leave just two independent health systems in the Pittsburgh area.

Financial terms were not disclosed.

Washington, Pennsylvania-based Washington Health has several partnerships with UPMC, including collaborations with the Hillman Cancer Center, the Children’s Hospital at Pittsburgh and Express Care clinics at the Washington Hospital campus. Washington Hospital was a founding member of the UPMC Health Plan when it launched more than 25 years ago.

Highmark Health, another Pittsburgh-based provider, was in merger discussions with Washington Health earlier this year, the Pittsburgh Post-Gazette reported Tuesday

“The board and senior leadership of [Washington] have realized that in today’s healthcare environment, we need to consider the long-term stability of our health system to continue to provide the quality healthcare services our local residents have come to expect,” Dan Miller, chairman of Washington Health’s board, said in a statement.

Executives were not made available for follow-up interviews.

UPMC reported first-quarter net income of $191 million, compared with a $221 million loss in the year-ago period. Washington Health declined to share its latest financial results.

UPMC’s footprint spans 40 hospitals and 800 doctors’ offices and outpatient sites across Pennsylvania, New York and Maryland, in addition to offering services in five other countries. Washington Health operates two hospitals and more than 40 off-site locations in southwest Pennsylvania.

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