West Virginia University Health System's move to absorb Western Pennsylvania's Independence Health System took a step forward this week with the signing of a definite agreement.
The deal, announced last November (see below), will add five hospitals to the academic system, bringing it to 30 total. The university has also agreed to $800 million of investment to expand services and modernize services at Independence.
The parties said they have conducted "extensive due diligence" in the time since the deal's announcement and obtained some of the necessary regulatory approvals. They expect the combination to close in late September or early October, pending those remaining regulatory all-clears.
“This agreement secures a stronger future for our hospitals, our caregivers and the patients who depend on us,” Ken DeFurio, president and CEO of Independence Health System, said in the announcement. “It brings the scale, capital and clinical strength needed to protect local access to care and positions this region for long-term growth.”
November 19, 2025
Western Pa.'s Independence Health System to join WVU Health System in 2026
Independence Health System, a five-hospital nonprofit in western Pennsylvania, is planning to join the West Virginia University Health System in the fall of 2026, the organizations announced Wednesday.
The deal, subject to regulatory reviews and bondholder consent, includes Independence’s affiliated physician groups and other subsidiaries along with the hospitals, all of which will operate under the WVU Medicine brand.
Further, the WVU Health System has committed to a five-year, $800 million investment to expand Independence’s clinical services and modernize facilities, with the announcement specifically calling out the emergency room at Butler Memorial Hospital and the campus of Westmoreland Hospital.
“We are excited to make this announcement today in partnership with WVU Medicine, and even more excited to have our organization become part of a progressive and innovative health system that has a proven track record in making deep investments in its people, clinical programs and infrastructure,” Independence President and CEO Ken DeFurio said in the announcement.
Independence describes itself as the third largest health system in western Pennsylvania, serving 10 counties with roughly 750,000 residents. Its hospitals combine for 925 total beds, and the organization employs almost 7,000 people alongside its network of 1,000 physicians and advanced practice providers.
The system was formed in spring 2023 with the merger of Excela Health and Butler Health System. For the fiscal year ended June 30, 2025, it reported more than $1.2 billion in total unrestricted revenues and a $19.5 million operating loss, an improvement in performance since its merger. The organization also laid off 151 employees earlier this year.
The WVU Health System spans 25 hospitals including its flagship, 880-bed J.W. Ruby Memorial Hospital, employs 35,000 people and has a network of 4,600 providers. In the fiscal year ended Dec. 31, 2024, it logged $6.8 billion in total operating revenues, a $179.8 million operating income and $344.6 million bottom line. As of the halfway point of 2025, the academic system sat at a $102.8 million operating income, which management said in a filing was above expectations in part due to high volumes.
The systems say their deal will help expand services and access to specialty care in western Pennsylvania. They also pointed to financial efficiencies and the opportunity to coordinate population health through the WVU Health System’s insurance affiliate, Peak Health.
"I am grateful to Ken, his leadership team, and the Independence Health System board for the trust they are placing in us to ensure their five hospitals continue to serve as community pillars and beacons of hope for generations to come,” Albert L. Wright, Jr., president and CEO of the WVU Health System, said. “Today marks the beginning of what I’m confident will be an exciting and rewarding journey, one grounded in our shared commitment to our mission, our patients, and the communities we serve.”