A new deal is set to create another mega-health system in Pennsylvania. Officials at Excela Health and Butler Health System announced on June 1 that the organizations have signed a letter of intent to merge. Although the details still need to be ironed out and regulators still need to give the thumbs-up, the new health system would generate more than $1 billion in annual revenue, employ approximately 7,300 people, and have more than 1,000 physicians and practitioners that serve a population of 750,000. This combination will support five hospitals including Butler Memorial Hospital, Clarion Hospital, Frick Hospital, Latrobe Hospital and Westmoreland Hospital.
Excela Health, a 578-bed, tertiary-based health System in Westmoreland County, Pennsylvania, includes three hospitals – Excela Westmoreland Hospital, Excela Latrobe Hospital and Excela Frick Hospital – and serves more than 23,000 inpatients, 700,000 outpatients and 100,000 emergency visits annually combined.
Butler Health System consists of two hospitals: Butler Memorial Hospital and Clarion Hospital. It has remained an independent community health system for over a century, with over 70 outpatient locations, 3,000 employees and 270 providers, making it the largest employer in Butler County and the largest healthcare employer in Clarion County.
Health systems have been very active in the Pennsylvania market this year. Penn Highlands Healthcare, based in DuBois, Pennsylvania, acquired two hospitals late last year (Highlands Hospital in Connellsville and Monongahela Valley Hospital in Monongahela) to expand its network. Penn Highlands Healthcare also purchased Clearfield Emergency Medical Services, an ambulatory surgery center in Clearfield.
Washington Health System, based in Washington, Pennsylvania, purchased Gateway Rehabilitation Center, a not-for-profit substance abuse disorder treatment provider. ChristianaCare Health System bought two primary care practices in southeastern Pennsylvania.
