Hospitals Embrace Mergers as Path to Survival

As Excela Health CEO John Sphon irons out the details of a merger with Butler Health System, his message to the public is clear.

He believes the alliance will ensure the system is a viable, long-term player in a highly competitive health care market, but he said it’s not an attempt to battle Western Pennsylvania giants UPMC or Allegheny Health Network, TribaLive reports.

“We have no desire nor intent to enter into a health care arms race with UPMC or AHN,” Sphon said. “We will not compete on a field measured by expansion.

“We will, however, compete on the field of quality of care. That focused use of capital, one that is motivated by what is in the best interest of our patients and their families, is what drives us. We have no desire to be the biggest, just the best in what we do.”

But Sphon and other executives at smaller health care systems have realized the path to being “the best” might require merging with similar systems to overcome challenges such as rising labor costs, decreasing inpatient admissions and ongoing fallout from the covid-19 pandemic. Read more.

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