HARRISBURG, PA — This week, Attorney General Michelle Henry announced a significant agreement involving UPMC and Washington Health Care Services. The deal aims to ensure affordable healthcare access in Washington and Greene Counties following UPMC’s acquisition of Washington Health Care Services.
UPMC and Washington Health Care Services have agreed on an Integration and Affiliation Agreement. This agreement will integrate Washington Health Care Services into UPMC’s extensive network. The Office of Attorney General reviewed the transaction to ensure it complied with state laws and regulations, acting in the public’s interest to maintain affordable healthcare.
Attorney General Henry emphasized the importance of the deal. “This transaction will keep Washington Hospital open and available to thousands of Pennsylvanians,” she said. “It is essential that the transaction promotes the interests of patients, hospital employees, and the community. My office did a comprehensive review and reached this agreement with UPMC and Washington Health Care Services to ensure those protections are in place.”
An Assurance of Voluntary Compliance (AVC) was reached to address concerns about the transaction’s potential impact on patients, staff, and the community. This AVC outlines several key provisions designed to protect access to quality care.
Firstly, the newly named UPMC Washington must negotiate with any willing health insurance plans. It must also commit to a single, last best offer arbitration to resolve disputed contract terms. This ensures ongoing negotiations remain fair and transparent.
Additionally, UPMC Washington is prohibited from including several restrictive clauses in its new contracts. These include anti-tiering, anti-steering, gag clauses, most-favored nation clauses, exclusive contracting, and all-or-nothing clauses. Such clauses often bind doctors and staff to restrictive health insurance contracts, limiting patient choices. By preventing these terms, health plans can offer subscribers more affordable, in-network access to UPMC Washington’s services.
The hospital must also comply with the No Surprises Act. This law protects patients from unexpected medical bills for insured, non-contracted patients. UPMC Washington will continue to provide charity care as per Washington Health Care Services’ existing policies. Charity care offers discounted rates or free care to patients who cannot afford the full cost of health services, particularly for emergency and inpatient care.
Employment contracts will remain honored under legal requirements. UPMC cannot impose non-compete agreements that are more restrictive than those currently existing within Washington Health Care Services.
The Attorney General’s Office conducted a thorough review through its Antitrust, Charitable Trusts and Organizations, and Health Care Sections. The review ensured the transaction met all legal standards and protected public interests. Executive Deputy Attorney General Mark Pacella, along with Chief Deputy Attorneys General Tracy Wertz, Gene Herne, and Geoffrey Hale, filed the agreement in the Pennsylvania Commonwealth Court.
This agreement has significant implications. It guarantees that Washington Hospital remains operational, providing essential healthcare services to the community. The provisions against restrictive contract terms prevent monopolistic practices, promoting competition and potentially lowering healthcare costs. Ensuring compliance with the No Surprises Act and maintaining charity care policies protect vulnerable populations from financial hardship due to medical expenses.
In summary, the agreement orchestrated by Attorney General Michelle Henry safeguards affordable and accessible healthcare for residents of Washington and Greene Counties. It promotes transparency, fairness, and competition within the healthcare system, benefiting patients and the broader community. The collaboration between UPMC and Washington Health Care Services, under regulatory supervision, represents a step towards sustainable, equitable healthcare in Pennsylvania.
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