Butler Health System, Excela enter definitive agreement to merge

From staff reports

Butler Health System, which includes Clarion Hospital, and Westmoreland County-based Excela Health announced they have entered into a definitive agreement to combine the two organizations into a new health system.

After a letter of intent that was announced in early June, the definitive agreement is the legally binding agreement that defines details of the transaction. BHS and Excela will now move forward with necessary state and federal regulatory approvals, which are anticipated to be complete by the end of the year, according to a BHS news release.

In addition to Clarion Hospital, the agreement includes Butler Memorial Hospital, Frick Hospital, Latrobe Hospital and Westmoreland Hospital.

BHS President and Chief Executive Officer Ken DeFurio, in the news release, said Friday’s announcement is “a major step forward in the process to redefine locally-controlled, community-based care. Our commitment to our patients in providing high-quality, low-cost sophisticated care in our region will be the cornerstone of the new entity.”

Excela CEO John Sphon, in the same news release, called the agreement “a very important development for our respective organizations and the proposed new system. We are now one step closer in realizing a goal that will have a dramatic and positive impact on health care for those we serve.”

When finalized, the new health system will employ about 7,300 people, and have more than 1,000 physicians and practitioners that serve a population of 750,000, according to the release. A name for the newly created organization will be announced at a later date.

Paul Bacharach and Tim Morgus, board chairs of Excela and Butler, respectively, said their boards approached the merger as an opportunity “to affect real and meaningful change in the landscape of health care in western Pennsylvania. We are most excited regarding the possibilities that are now before us.”

Butler Health System

BHS, which consists of Clarion Hospital and Butler Memorial Hospital, has been an independent community health system for more than a century.

The system employs 3,000 people and more than 270 providers, making it the largest employer in Butler County and the largest health care employer in Clarion County.

BHS offers nationally recognized care in cardiology, palliative care and maternity as well a broad range of surgical, medical, emergency and psychiatric services, in addition to its primary health services.

Excela Health

Excela Health, a 578-bed, tertiary-based health System in Westmoreland County, includes three hospitals: Excela Westmoreland Hospital, Excela Latrobe Hospital and Excela Frick Hospital.

The system annually serves more than 23,000 inpatients, 700,000 outpatients and 100,000 emergency visits. With more than 700 physicians and allied health professionals and 4,300 employees, Excela is a regional leader in clinical areas such as cardiovascular disease, orthopedics, maternity care and emergency medicine.

Excela has received recognition from U.S. News & World Report in its list of top-ranked regional hospitals and achieved Magnet Recognition®, the highest honor for nursing professionalism and superior patient care given by the American Nurses Credentialing Center.

 

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