Pittsburgh-based UPMC and Washington (Pa.) Health System have reached an agreement with Pennsylvania Attorney General Michelle Henry to preserve affordable healthcare access in the area after UPMC and WHS filed a letter of intent to affiliate last June.
The initial Integration and Affiliation agreement between UPMC and WHS was reviewed by the attorney general's office to ensure state law and regulation compliance and to ensure the preservation of affordable healthcare access.
UPMC, WHS and the attorney general's office then reached an Assurance of Voluntary Compliance agreement, which addressed Ms. Henry's concerns over the potential impact the affiliation could have on the community, staff and patients, according to a May 30 news release from the attorney general.
"We're pleased that our affiliation with the Washington Health System has been approved by the Pennsylvania Attorney General and we look forward to completing the process so that we can serve the residents of Washington and Greene counties," Paul Wood, VP and chief communications officer for UPMC, said in a statement shared with Becker's.
Under the AVC agreement, the renamed hospital entity, UPMC Washington, "must negotiate with any willing health insurance plans, and commit to a single, last best offer arbitration, to resolve any disputed contract terms," the release said.
UPMC Washington will also be barred from implementing gag clauses, anti-tiering, anti-steering exclusive contracting, most-favored nation clauses and all-or-nothing clauses in its new health insurance plan contracts. Many of these clauses can be found in hospital contracts that require employees and doctors to be tied by restrictive health insurance contracts, the release said.
Health insurance plans will also not be limited by UPMC Washington to contract with other healthcare providers under the agreement with the attorney general, in an effort to allow health plans to offer more affordable, in-network access to UPMC Washington providers for subscribers.
"UPMC Washington will continue to comply with the No Surprises Act providing services to insured, non-contracted patients and will continue to provide charity care as outlined in Washington Health Care Services' existing charity care policies," the release said. "Charity care allows for patients who cannot afford the full cost of their health care services to receive discounted rates or free care, as applicable to emergency and inpatient care."
Existing employment contracts, subject to legal requirements, will be honored by UPMC under the new agreement. The health system will also not be able to impose non-compete agreements that are more restrictive than those that exist at Washington Health System.
"WHS is looking forward to the next steps of finalizing this affiliation, which will preserve healthcare and jobs within our community," a spokesperson for WHS said in a statement shared with Becker's.
While WHS workers part of SEIU Healthcare Pennsylvania feel that the agreement features important protections, they want more to be done to ensure that no jobs or services will be cut and that WHS facilities remain open.
"The healthcare workforce is already struggling with a severe staffing crisis, the lingering effects of the pandemic, turnover, burnout and inflation," an SEIU Healthcare Pennsylvania statement shared with Becker's said. "Any cuts – such as the service terminations, closures, layoffs and pay reductions that UPMC has carried out across its system – would be devastating to Washington. UPMC must instead, as promised, invest significant resources in our workforce and the care we deliver."