Allegheny Health Network (AHN) and Heritage Valley Health System (HVHS) announced Wednesday a finalized affiliation agreement between the two organizations, officially bringing HVHS into the Beaver, Pennsylvania-based health system.
Through the acquisition, two HVHS hospitals will be rebranded—bringing AHN’s reach to 16 full-service, acute-care inpatient facilities, according to the July 1 announcement. The system will also add 36 Heritage Valley physician offices and seven multi-specialty outpatient facilities.
Moreover, Heritage Valley’s approximate 3,000 employees will become AHN staff members—with AHN now employing 27,000 individuals through the acquisition.
Heritage Valley President and CEO Norm Mitry said in a statement excitement “was palpable” among the caregivers and community after the October intent announcement.
“That enthusiasm has only grown stronger in the ensuing days, and we could not be happier with the news today that we are now formally part of this great organization,” Mitry said. “This affiliation secures the future of Heritage Valley, by not only preserving, but significantly strengthening the tradition of caring and clinical excellence that has defined our health system, and its people, for more than a century.”
The two organizations have committed roughly $285 million over the next decade to strengthen Heritage Valley’s clinical services, as well as investing and facility and IT infrastructure improvements—including the installation of Epic electronic health record (EHR) systems.
"Of the many important benefits this affiliation will bring to our organization, the opportunity to welcome so many outstanding additional caregivers into the AHN family, and in doing so further expand the reach of our many exceptional clinical programs, is what excites us most,” said Mark Sevco, AHN president, in a statement.
The affiliation saw brief pushback from Pennsylvania Attorney General Dave Sunday that was put to bed Wednesday with the announcement of a court-approved settlement that aims to protect patients, providers and health plans “potentially impacted” by the acquisition.
AHN, which is a part of Highmark Health, agreed to the settlement, which includes provisions on maintaining the UMPC/HVHS Cancer Center joint venture; not terminating existing health plan contracts except for cause; continuing affordable and quality services in Beaver and Allegheny counties and not engaging in any anticompetitive health plan contracting.
“When hospital systems change ownership, there is always the potential for impacts on access to care,” Sunday said in a statement. “The hardworking staff in my office negotiated an agreement that protects access to high-quality health care services for these western Pennsylvania communities and ensures those services remain available for at least the next decade.”