Board members of Pittsburgh-based UPMC and Coudersport, Pa.-based Cole Memorial signed a letter of intent to affiliate.
Under the letter of intent, the organizations will create a definitive affiliation agreement. The Cole Memorial board of directors will provide UPMC officials with ongoing input, advice and direction during the negotiations. UPMC will also commit a minimum of $27.5 million during the next seven years to upgrade Cole Memorial's IT infrastructure.
As part of the agreement, UPMC Susquehanna in Williamsport, Pa., will provide management services to Cole Memorial once the transaction is complete.
The transaction is contingent upon a due diligence period and regulatory approval. Officials expect to close the transaction before winter 2017.