Two Horizon Health System, Greenville, Pa., last week signed a letter of intent to merge with University of Pittsburgh Medical Center Health System in a deal expected to close by late summer.
On May 26, Horizon's board of trustees approved the merger, which would add two more community hospitals to feed UPMCHS' tertiary-care facilities more than 70 miles away in Pittsburgh. The deal would lift to 13 the number of acute-care hospitals in UPMCHS' network.
The 286-bed Horizon was formed through the 1992 merger of Greenville Regional Hospital and Shenango Valley Medical Center in Farrell, Pa.
According to the two systems, UPMCHS plans to invest "significant resources" to expand services and facilities at Horizon. Details are expected to be released when the deal is consummated, a UPMCHS spokeswoman said.
For the 10 months ended April 30, Horizon had revenues of $62.9 million. UPMCHS has annual revenues of $2.5 billion.
Under terms of the deal, Horizon would maintain two-thirds control of its local governing board, with one-third appointed by UPMCHS. Horizon would gain a vote on the executive committee of UPMCHS, now with 18 members, and two seats on the main board of UPMCHS, with 40 seats.
The two systems have had an affiliation agreement in force since 1996.