Pennsylvania merger would form 5-hospital system with $1B in annual revenue

Greensburg, Pa.-based Excela Health and Butler (Pa.) Health System have signed a definitive agreement to merge into a five-hospital system that is projected to generate more than $1 billion a year in revenue, reported Nov. 21. 

The news moves the transaction — which was initially announced June 1 — closer to completion. If finalized, the new health system would employ aout 7,300 people and serve a population of about 750,000.

No changes to either organization's staffing, types of insurances accepted or facilities are expected, but more detailed plans may be discussed as the transaction moves forward, according to the report. 

"With this merger, it will actually enhance our medical staff. (We'll) be able to provide additional services and expand our reach," Excela CEO John Sphon told the publication. "Both organizations provide some very high-quality care in their own right. As we combine, we will be able to enhance that."

Mr. Sphon hopes the merger will attract more talent to the new health system's medical staff, accordign to the report. With about 4,800 employees, Excela is the largest private employer in Westmoreland County, while Butler Health System is the top employer in Butler County and the largest healthcare employer in Clarion County, with about 3,000 staff.

The new organization plans to spread its executives across multiple hospitals, rather than have a central corporate office. If completed, the merger would create the third largest health system in the state.

"It provides us the necessary size and scale to elevate our relevancy and significance in this region's marketplace," Mr. Sphon told "How big you have to be, we don't know that, but we think this merger of what I consider these two strong, community-based, high-quality organizations will benefit both of us."

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