After a rough year due to the pandemic for Monongahela Valley Hospital, the organization has decided to merge with Penn Highlands Healthcare. In Monongahela Valley’s annual report, the hospital expressed financial stress after having to cancel elective procedures and shore up PPE for its staff, and was even forced to furlough employees. No financial terms for the merger were disclosed.
Monongahela Valley is a 200-bed health facility with a 225-member medical staff representing more than 40 specialties. With more than 1,300 employees, Monongahela Valley is the largest employer in the mid-Monongahela Valley region and the third-largest employer in Washington County. In 2020, it had total patient revenue of approximately $111.5 million but a $6.1 million loss in EBITDA. According to an article in the Pittsburg Post-Gazette, the hospital was also in violation of debt service and other covenants.
Penn Highlands Healthcare is comprised of six hospitals: Penn Highlands Brookville, Penn Highlands Clearfield, Penn Highlands DuBois, Penn Highlands Elk, Penn Highlands Huntingdon and Penn Highlands Tyrone. Its business continuum also includes a home care agency, Penn Highlands Community Nurses, two long-term care facilities, Pinecrest Manor and Penn Highlands Jefferson Manor and a senior residential living facility, Elco Glen. In 2020, Penn Highlands Healthcare had revenues of $612 million.
The Board of Directors of both Monongahela Valley and Penn Highlands Healthcare have agreed to the merger. The affiliation is expected to take effect in the fall of 2021.
