Excela Health and Butler Health System have signed a letter of intent to create a new health system, potentially creating a third medical giant in Western Pennsylvania, the Pittsburgh Post-Gazette reports
The size of the new system, which will generate over $1 billion in revenue, will be big enough to “accelerate and elevate its relevancy and essentiality in the region’s highly competitive health care marketplace,” the systems said.
Leadership of the new system and other details will be released as definitive merger documents are completed.
The announcement also comes during a difficult financial stretch for health systems nationwide.
BHS reported an operating income loss of $8.2 million for the three months ending March 31, widening the $6.7 million loss it registered for the same period in 2021. Excela reported a loss from operations of $29.2 million for the fiscal year ending June 30, 2020, the most recent financials issued to bondholders.
For Excela, the new tie-up follows a failed effort to acquire Monongahela Valley Hospital in Washington County last year. Clearfield County-based Penn Highlands Healthcare ultimately took control of the 200-bed Mon Valley Hospital in October. Read more.
