Ken DeFurio, who served as president and CEO of Butler Health System, will lead the new organization formed by the merger of Butler and Excela Health, officials announced Tuesday.

The merger was final as of Sunday, Jan. 1.

John Sphon, who was CEO of Excela Health, plans to retire in March. He will remain in an advisory capacity for several months, and then serve as a trustee of the new health system.

“This is a watershed moment in the history of our respective organizations,” Sphon said in a statement. “It marks a turning point that will change the landscape of health care in our region for the betterment of both Excela and Butler and, most importantly, the patients we will serve together.”

“This was a crucial step in bringing the two organizations together,” DeFurio said. “Over the past year, both boards invested an immense amount of work, time and energy to determine if this merger made sense. We now look forward to implementing the opportunities that we’ve identified and discovering new ones.”

The merger between the two systems, anticipated to bring in more than $1 billion in revenue, was announced June 1 with a letter of intent. The definitive agreement for the transaction was signed in November and sent with other documentation to the state and federal government for review.

The new system is projected to employ approximately 7,300 people, have more than 1,000 physicians and practitioners, and serve a population of 750,000.

Sphon has emphasized that the merger was not a situation of one organization acquiring another. He said he anticipated the deal would help attract new staff members to the system and add resources to both regions.

Sphon and DeFurio said they will offer details on the new system and announce its name in the coming weeks.

“It is important to underscore that a merger process of this magnitude is very complex and requires an approach that is highly thoughtful and diligent,” DeFurio said. “We can now continue our focus on integrated governance, executive structure and other elements that are key to effective and efficient delivery of care.”

Excela is the top private employer in Westmoreland County with about 4,800 employees, and Butler Health System is the largest employer in Butler County and the largest health care employer in Clarion County, employing 3,000 people.

Excela has three hospitals across Westmoreland County, and Butler Health System has one hospital in Butler County and another in Clarion County.

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