What’s the future of health care independence?

IN 2022, EXCELA HEALTH announced a merger with Butler Health System. It was all about taking the two organizations and giving them “the requisite scale to accelerate and elevate its relevancy … in the region’s highly competitive health care marketplace.” That public-relations speak could be interpreted as allowing the hospitals to survive in a landscape dominated by the big dogs of UPMC and Allegheny Health Network. That was three years ago, and a lot has happened since. Excela and Butler created a new entity named Independence Health. There have been struggles. It hasn’t been easy. Butler’s credit rating worsened. Independence announced it was cutting 151 jobs. Keeping up with the industry leaders isn’t a walk in the park. And then there are the less Independence-specific issues. All hospitals are dealing with a changing environment after the covid-19 pandemic. Staff members are burned out. Pharmacy benefit managers and insufficient Medicaid and Medicare reimbursements are hurdles all health care providers have to navigate. That made another change predictable. It is a little surprising that it came so quickly. But this isn’t a merger. WVU Health System is acquiring Independence, and its debt. The deal will be final in the second half of 2026, assuming the Pennsylvania Department of Health and the Federal Trade Commission sign off.