The University of Pittsburgh Medical Center acquired Pennsylvania's Washington Health System on Saturday.
The nonprofit health systems signed a definitive agreement to merge in October, after first announcing plans in June 2023. UPMC has committed to invest at least $300 million over the next decade into Washington's two hospitals, now UPMC Washington and UPMC Greene, to upgrade facilities and support clinical services, according to a Saturday news release.
Related: Health systems invest in new facilities, services to grow revenue
Financial terms of the deal were not disclosed. Pennsylvania Attorney General Michelle Henry signed off on it last week after reviewing the potential effects on patients and employees. UPMC must honor all existing employment contracts, according to an agreement with state regulators.
UPMC Washington and UPMC Greene will have a 16-member board of directors, with 11 legacy board members from Washington Health and five newly appointed members from UPMC, according to the news release.
Brook Ward, who was Washington Health president and CEO, is president of UPMC Washington and UPMC Greene.
Pittsburgh-based UPMC said in the release it will honor payer contracts already in place at Washington Health facilities, and the merger will not affect patients' in-network coverage.
Washington, Pennsylvania-based Washington Health already had several partnerships with UPMC, including collaborations with the Hillman Cancer Center, Children's Hospital of Pittsburgh, Magee-Womens Hospital and the Heart and Vascular Institute. Washington Hospital also was a founding member of the UPMC Health Plan, which covers more than 4 million members.
UPMC has more than 100,000 employees who provide care across 40 hospitals and 800 other care sites in Pennsylvania, New York and Maryland. The health system reported a $24 million net loss in the first quarter, compared with a $191 million gain the in the first quarter of 2023. It reported a $31 million net loss last year.
