Susquehanna Health, UPMC Pursue Affiliation

The two health systems said they've signed a letter of intent to explore an exclusive affiliation. No timetable was offered for when the deal would be finalized.

Susquehanna Health, the Williamsport-based four-hospital health system serving Northcentral Pennsylvania, is pursuing an affiliation with regional giant University of Pittsburgh Medical Center.

In a joint press release, the two health systems said they've signed a letter of intent to explore an exclusive affiliation. No timetable was offered for when the deal would be finalized, and neither system suggested what the affiliation will look like when it's agreed upon. Whatever the arrangement, it likely will require state regulatory approval.

"Over the past two years, we've thoroughly explored partnerships and our guiding principle had always been: 'what's best for our patients?"' Susquehanna Health CEO and President Steve Johnson said in an email exchange with HealthLeaders Media. "UPMC emerged as a wonderful cultural fit for our patients, health system, and community. It's the right thing for our patients and for our community."

"This partnership means the continued growth of our organization, more opportunities to bolster our existing services and introduce new specialty services to the region, more effective physician recruitment and retention, a new, competitive insurance option and access to the intellectual capital of one of the pre-eminent academic medical centers in the country," Johnson says.

Susquehanna Health Board Chairwoman Ann Pepperman said UPMC was picked because of its "compatible fit with our faith-based, service-oriented culture and a relationship that enables us to grow services for our community and continue to add family-sustaining jobs. UPMC has a proven track record of investing in and growing services for patients in the Erie, Altoona and Bedford communities. In addition, UPMC supports and maintains the Catholic tradition of its member hospital, UPMC Mercy in Pittsburgh."

UPMC CEO and President Jeffrey A. Romoff said that by "combining our world-renowned healthcare and research programs with our value-driven insurance products, UPMC is able to offer patients and employers clinically integrated programs to better manage the community's health. Together we will enhance and position UPMC Susquehanna Health as the leading provider of world-class care at the lowest possible cost in northcentral Pennsylvania."

Susquehanna Health hospitals include Williamsport Regional Medical Center, Divine Providence Hospital in Williamsport, Muncy Valley Hospital in Muncy, Soldiers & Sailors Memorial Hospital in Wellsboro. The system employs close to 4,000 people in an 11-county service area

UPMC is the dominant health system in western Pennsylvania and the largest nongovernmental employer in Pennsylvania, with more than 60,000 employees, more than 20 hospitals, more than 500 doctors' offices and outpatient sites, a more than 2.9-million-member health insurance division, and international and commercial operations. The system is affiliated with the University of Pittsburgh Schools of the Health Sciences.

The Susquehanna affiliation is the latest in an aggressive line of expansions by UPMC, that includes Pittsburgh's Mercy Hospital in 2008, Children's Hospital in Lawrenceville in 2009, Erie's Hamot Medical Center in 2011, Altoona Regional Health System in 2013, and Jameson Health System in New Castle earlier this year.