ALTOONA – The boards of directors of Altoona Regional Health System and parent company Central Pennsylvania Health Services Corp. took their final action in the affiliation process with the University of Pittsburgh Medical Center, voting unanimously to join the UPMC system on July 1.
This process began almost two years ago with a study to assess the future of health care for the region and to determine the benefits of alliances with smaller, similar-sized, and larger systems. After it became apparent that an affiliation with a larger partner was the most prudent course, board members, administrators and physicians heard proposals from several interested organizations.
At the end of this exhaustive analysis, all agreed that UPMC offered the best opportunities for the health care system, its employees, and its community.
“After looking at all possible options intently, our community board members made a decision we are very excited about,” said Rob Halbritter, Altoona Regional board chairman.
“UPMC shares our commitment to superior-quality patient care and our vision for the future. An affiliation with UPMC will be extremely positive for Altoona Regional, our patients, and the entire region.”
As board members have emphasized throughout this entire process – and restated at its voting meeting – the priorities of any relationship are (1) to preserve existing services and (2) to enhance and expand the exceptional care its health system provides, while addressing the significant challenges and financial pressures in health care today.
UPMC is a world-class academic medical center and is consistently ranked in the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals.
“UPMC was chosen because it offers a relationship that will enable Altoona Regional to further enhance our quality of care and breadth of medical services,” said Altoona Regional President and Chief Executive Officer Jerry Murray. “We also will gain new access to capital, outstanding technology, science, innovation and expertise.”
The operational integration between the two outstanding medical institutions is expected to begin in the next six months.
Here are some highlights of the approved agreement:
- Altoona Regional Health System’s new name will be UPMC Altoona.
- Altoona Regional will become UPMC’s regional referral center.
- Local board governance will continue. Two-thirds of the board will be appointed by the current Altoona Regional board. Successors will be appointed by a majority of these directors on a self-perpetuating basis. One-third will be appointed by UPMC. The board can appoint one member to the UPMC board.
- UPMC has made a capital commitment of $250 million over 10 years for the enhancement of health care facilities and services at Altoona Regional and its affiliates, and to bring outstanding technology, science, innovation, and expertise to the region.
- UPMC has made an additional commitment of $10 million to the hospital’s foundation.
- UPMC will assume responsibility for all of Altoona Regional’s outstanding debt and will ensure satisfaction of other liabilities, including all pension liabilities.
- UPMC is committed to operating Altoona Regional at its current campus and maintaining core specialty services there for at least 20 years.
“I am excited to begin the next step in our journey as UPMC Altoona,” Murray said. “Together with UPMC, we will continue our mission of delivering world-class health care to our region.”
