The proposed merger between Butler (Pa.) Health System and Greensburg, Pa.-based Excela Health presents both health systems with opportunities for revenue growth, the Pittsburgh Post-Gazette reported June 13.
The deal announced June 1 would create a five-hospital system with more than $1 billion in revenue. The combined system would be the third largest in Western Pennsylvania based on revenue, behind UPMC and Allegheny Health Network, according to the report.
Excela Health is the bigger system, with three hospitals and $662 million in operating revenue. Butler has two hospitals and $339 million in operating revenue. Still, combining with Butler gives Excela opportunities for growth, including Butler's 12 percent stake in senior care giant Concordia Lutheran Ministries, based in Cabot, Pa. Home care and telehealth have become more essential during the pandemic, according to the report.
Additionally, Butler and Excela both have retail pharmacies, but neither participate in the federal government's 340B prescription drug program, which is a major revenue source for many participating facilities, according to the report.
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