Community leaders anticipate economic boost from Independence-WVU Health merger

The proposed acquisition of Independence Health System by the West Virginia University Health System (WVU Medicine) could be a major benefit for the community, local leaders said Wednesday.

Officials announced that Independence’s five hospitals — including facilities in Greensburg, Latrobe, Mt. Pleasant, Butler, and Clarion counties — will join the Morgantown-based system.

Local officials gave strong support to the proposed merger, citing the promise that WVU Health System will invest more than $800 million into local facilities. This includes approximately $500 million over the next five years specifically designated to upgrade the Westmoreland Hospital campus in Greensburg.

Westmoreland County Commissioner Doug Chew was enthusiastic about the planned investment.

“Millions of dollars will be invested in Westmoreland County to grow services and this partnership will enhance their ability to recruit top physicians to keep our constituents close to home for their care. I’m excited for the future of health care in our county,” Chew said.

Butler County Commissioner Kevin Boozel highlighted the value of financial stability.

“I’m anticipating a lot of good things. I have a lot of trust in the hospital board and executive team and I think stabilizing finances in this time of uncertainty with medical insurance could be a great help right now. And my understanding is that an investment from WVU Medicine will have a beneficial effect on the Independence Health system we have in place now.”

Dan DeBone, president of the Westmoreland County Chamber of Commerce, called the investment a key economic driver.

“The chamber is ecstatic. In terms of the level of investment they said they’d bring this will allow them to expand their footprint and medical expertise while placing our health care on par with the best in the country. We think this will prove to be a key economic driver for years to come and we’re pumped,” DeBone said.

The merger means Independence Health System, the third-largest health care system in Western Pennsylvania, will join a system that Becker’s Hospital Review ranks among the 50 largest health care systems in the United States.

Independence Health is poised to join a health system that according to Becker’s Hospital Review ranks among the 50 largest health care systems in the United States.

WVU Medicine currently includes 25 hospitals in four states, 3,400 patient beds and 35,000 employees. It operates with annual revenues of $7 billion.

Independence Health System, the third largest health care system in western Pennsylvania, operates five hospitals with a combined bed count of 925, employs 7,000 staffers.

By comparison, the University of Pittsburgh Medical Center based in Pittsburgh has 40 hospitals in its system that includes with 8,500 patient beds, revenues of $30 billion. Allegheny Health Network, also based in Pittsburgh, operates 14 hospitals with more than 2,500 beds and, according to its website, has annual revenues of $4 billion.

WVU made inroads into Pennsylvania in 2020 when it took over operations at Uniontown Hospital in Fayette County.

David Galliton, who served as president and CEO of the former Excela Health (a precursor to Independence Health System), believes the merger will improve regional health care.

“I think this is a big deal for the region. This brings another competitor into the mix in Southwest Pennsylvania in a big way,” Galliton said.

The Hospital and Health System Association of Pennsylvania, meanwhile, issued a statement noting that hospital mergers have become more common due to financial pressures.

“Pennsylvania hospitals’ priority is preserving access to high-quality care in their communities. As more and more hospitals and health systems across the state experience financial headwinds, we have seen an increase in mergers that aim to promote long-term stability and protect access to care.”