BHS announces plan to merge with Excela Health – Cranberry Eagle

The Butler Health System is expected to merge with Excela Health, according to BHS officials. File Photo.

The Butler Health System is expected to merge with Excela Health, officials from the health systems announced Wednesday.

The Boards of Trustees of Butler Health System and Excela Health have entered into a “letter of intent” to merge the organizations, according to a news release.

“We strongly believe that our new partnership will extend our intellectual and financial capital. In doing so, we can enhance access to care, decrease the cost of care and continue to focus on providing improved experiences and outcomes for patients,” said John Sphon, Chief Executive Officer at Excela.

Ken DeFurio, President and Chief Executive Officer at Butler Health System said the move will allow both systems to add and improve clinical offerings and services, improve efficiency, reduce costs and provide higher quality care to patients.

“We are pleased that this partnership amplifies our ability to provide tertiary care, yet remain physician led and community focused,” DeFurio said.

Combined, the new health system would be the third-largest in Western Pennsylvania. It will be the only one that is community-based and locally controlled, he said.

Sphon and DeFurio highlighted that Butler and Excela are culturally aligned, share deep mutual respect, and 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.

Excela Health serves more than 23,000 inpatients, 700,000 outpatients and sees 100,000 emergency visits annually. Submitted Photo.

The parties

Excela Health is a 578-bed, not-for-profit health system in Westmoreland County that includes three licensed, acute care hospitals — Excela Frick Hospital in Mount Pleasant, Excela Latrobe Hospital in Latrobe and Excela Westmoreland Hospital in Greensburg.

Excela Health serves more than 23,000 inpatients, 700,000 outpatients and sees 100,000 emergency visits annually.

Once complete, the merger will bring two more hospitals into the same network, including Butler Memorial and Clarion hospitals.

Butler Memorial Hospital is a 326-bed acute-care facility with a broad range of surgical, medical, emergency and psychiatric services.

In 2019, BHS was part of a merger that brought Clarion Hospital into its network.

Clarion Healthcare System is made up of four affiliates, all located in Clarion, Pa., including Clarion Hospital, a 70-bed facility providing 24-hour emergency services, among other features.

Like BHS, Excela Health also boasts an extensive list of facilities and services, including two free-standing outpatient surgery centers, home and hospice care services, physician practices and a medical equipment company, among others.

The new health system will be made up of more than 7,300 employees and 1,000 physicians, who serve a population of about 750,000.

Excela Health employs 4,300 employees and credentials more than 700 physicians and allied health professionals, according to its website. It also serves parts of Fayette and Indiana counties.

Butler Memorial Hospital is a 326-bed acute-care facility with a broad range of surgical, medical, emergency and psychiatric services. File Photo.

BHS is Butler County’s largest employer and the largest healthcare employer in Clarion County. It employs more than 3,000 employees and over 270 providers, according to its website.

When finalized, the new health system is to generate over $1 billion in revenue.

Process started

The letter of intent is the first formal step to merging the two companies. The two parties will still need to reach a definitive agreement.

Once an agreement is reached, regulatory approval would be needed at the state and federal levels. Lastly, the boards of both systems would need to vote on final approval.

System officials said the process likely will extend beyond 2022.

Sphon and DeFurio emphasized that more specific details of the new entity will be as the definitive documents are completed. Topics such as leadership and new system name will be determined throughout this process.

Terri Petrick and Tim Morgus, the Board Chairs of Excela and Butler 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.