Feb 1, 2024 By Karen Mansfield 4 min read

U.S. Rep. Guy Reschenthaler

The pending merger between Washington Health System and University of Pittsburgh Medical Center (UPMC) has the backing of U.S. Rep. Guy Reschenthaler.

Reschenthaler on Wednesday sent a letter to the Federal Trade Commission in support of Washington Health System’s proposed affiliation with UPMC.

In the letter, Reschenthaler, who represents the 14th Congressional District, which includes Washington, Greene and Fayette counties, wrote, “I strongly support UPMC’s proposed affiliation and investment in Washington Health System (WHS), which will be critical to my constituents’ access to quality, affordable health care.

“Rural hospitals across our nation face significant challenges, such as massive deficits driven by lower occupancy rates, increasing inflation and insurance costs, and reduced reimbursement rates. These same challenges are currently impacting WHS. Without structural change and outside investment, their ability to maintain the same levels of care and services would be severely impacted and could lead to the closure of the health system,” Reschenthaler wrote.

WHS is on track to lose more than $34 million this year and $40 million next year, a result of increasing expenses and decreasing revenues.

WHS and UPMC originally announced their intent to merge in June, and signed a definitive agreement in October for an affiliation.

Under the terms of the agreement, UPMC has pledged to invest a minimum of $300 million in capital in WHS over the next 10 years. Also according to the agreement, all employees will be retained. With more than 2,700 employees, WHS is the largest employer in Washington County.

“After careful review, I applaud UPMC’s commitment to investing $300 million in capital and continuing critical WHS services, including women’s health, cardiac surgery, internal medicine, surgery, and other clinical services. They also will maintain WHS as an inpatient acute care general hospital with core services like emergency, diagnostic, ambulatory, and primary care. “Additionally, UPMC will honor collective bargaining agreements at WHS and has assured my constituents that it will not interrupt access to care or force patients to switch or convert their insurance,” Reschenthaler continued in his letter to the FTC. “As the Commission works to protect consumer choice and competition in the marketplace, I urge you to support WHS’ affiliation with UPMC.”

In a recent interview, WHS President and CEO Brook Ward noted that the approximately $30 million in capital investments committed annually by UPMC far exceed the capital budget allocations of $4 million in 2022, $6 million last year, and $8 million for 2024 that WHS has invested by itself.

UPMC is the largest non-governmental employer in Pennsylvania and operates 40 hospitals, including four regional hubs.

Ward has called the affiliation “a win for the community” and has maintained the affiliation will increase services, noting UPMC plans to make Washington Hospital a regional hub and grow the campus, and that “everybody keeps their job, pay, and benefits” while preserving local health-care access.

On Tuesday, Washington Mayor JoJo Burgess endorsed the proposed affiliation, saying, “We have to support this type of merger because if we don’t, I do believe the Washington Health System will not be here in the coming years.”

The affiliation, however, has been met with resistance by SEIU Healthcare Pennsylvania. Representatives of the organization, along with representatives from other groups, attended a meeting on Wednesday with the senior deputy of the Attorney General’s Office in Pittsburgh to deliver a petition and written comments from patients and families, and to voice concerns they say they did not get a chance to share during a Jan. 18 public hearing.

At that public hearing, WHS and UPMC employees, elected officials, and others who spoke vastly supported the deal.

An SEIU Healthcare Pennsylvania representative declined to comment on Wednesday’s meeting.

The Attorney General’s office must approve the deal. WHS and UPMC are submitting information requested by the office, which has 30 days to review and issue a decision, but hospital officials from WHS and UPMC don’t know when a decision will be made, Ward said in a radio interview Wednesday.

But Ward has said time is critical, and if the deal is not approved, the health system could soon be forced to cut services and employees and, inevitably, close its doors.

Reschenthaler believes UPMC’s affiliation with WHS is important for the local economy.

“The investment in southwestern Pennsylvania’s economy will increase job growth, access to care, and continued involvement in our local communities,” he wrote.