From staff reports
Butler Health System and Greensburg-based Excela Health have signed a letter of intent to form a new health system, according to a BHS news release.
When finalized, the release said, the new health system would generate over $1 billion in revenue, employ about 7,300 people, and have more than 1,000 physicians and practitioners who would serve a population of 750,000.
According to the release, the combination would support five hospitals, including Clarion, Butler, Frick, Latrobe and Westmoreland.
Excela Chief Executive Officer John Sphon said the partnership would extend intellectual and financial capital and that “we can enhance access to care, decrease the cost of care and continue to focus on providing improved experiences and outcomes for patients.”
The CEOs emphasized more specific details of the new entity will be agreed upon and move forward through mutual agreements as the definitive documents are completed. Topics such as leadership and new system name will be determined.
Tim Morgus and Terri Petrick, board chairs of BHS and Excela, respectively, voiced their organizations’ mutual enthusiasm regarding the creation of the joint health system.
“Our Boards believe we have the opportunity to create a new paradigm of care in western Pennsylvania,” they said jointly.
The CEOs said their respective systems share a common vision on national and regional industry transformation.
“Our alignment on these important elements of a partnership will provide great value as we move forward,” Sphon said.