Feb 12, 2024 2 min read

While many local leaders are lining up to endorse the acquisition of Washington Health System (WHS) by UPMC, it begs the question as to why a community asset like WHS would need to give up its independence to continue?

Like many health care providers in Western Pennsylvania, I would hazard a guess that UPMC’s commercial, Medicaid, and Medicare patients are Washington Health System’s largest source of business. UPMC ultimately dictates reimbursement rates to these providers, so when we hear local leadership talk about declining reimbursements, a large part of that can be attributed to the very entity acquiring them.

We see this same thing happening with pharmacies, when CVS Caremark cuts pharmacy reimbursements, then sends letters offering to buy the independent pharmacies they are putting out of business.

This vertical integration, with health Insurers owning hospitals and provider practices, leads to decreased quality and availability of care, while allowing the insurers to generate larger profits on reduced competition.

We have seen this script before at Children’s Hospital of Pittsburgh, Western Psychiatric Hospital, and Mercy Hospital – UPMC takes over and eventually tries to force out Highmark. Let’s hope core services will remain for the community.

Bigger is not always better.

Erich Cushey

Claysville

Cushey is the owner of Curtis Pharmacy.