State reaches agreement on UPMC acquisition of Washington Hospital

Pennsylvania State Attorney General Michelle Henry signed off on UPMC’s acquisition of the Washington Health System.

UPMC has moved a step closer to buying Washington Hospital by reaching an agreement with the state Attorney General that is designed to ensure patients with health insurance other than the UPMC Health Plan will have the opportunity to have in-network benefits to the hospital’s services.

The voluntary compliance agreement with UPMC and Washington Health System will preserve affordable access to health care in Washington and Greene Counties, Attorney General Michelle Henry said in a statement Thursday.

“This transaction will keep Washington Hospital open and available to thousands of Pennsylvanians,” Henry said. “It is essential that the transaction promotes the interests of patients, hospital employees, and the community. My office did a comprehensive review and reached this agreement with UPMC and Washington Health Care Services to ensure those protections are in place.”

The deal was reached after a review of the integration and affiliation agreement UPMC signed with Washington Health System in October and addresses concerns about the potential impact on patients, staff and the communities served by Washington Hospital, the Attorney General stated.

UPMC and Washington Health System, which operates its flagship 278-bed hospital in Washington and a 49-bed facility in Waynesburg, announced the intention to merge in June 2023. Washington Health System had said in late 2022 it was considering merging with another health system.

The renamed UPMC Washington Hospital will have to negotiate with health insurance plans interested in providing coverage and commit to last best arbitration offer to resolve any disputes, according to the agreement.

UPMC said in a statement it looks forward to completing the acquisition of Washington Health System.

Before the acquisition can be finalized, UPMC still must obtain approval of the merger from the Federal Trade Commission, said Susan Manko, a UPMC spokeswoman.

The FTC reviews such agreements in light of laws to prevent anti-competitive conduct that would deprive consumers of the benefits from competition, the agency said on its website.

UPMC expects the FTC will render a decision very soon, Manko said.

A FTC spokesperson could not be reached for comment late Thursday afternoon.