Allegheny Health System adds two more hospitals: ‘A perfect fit’

Allegheny Health Network is expanding its footprint in western Pennsylvania.

Regulators have signed off on Allegheny Health Network’s acquisition of the Heritage Valley Health System, which operates two hospitals and dozens of clinics and outpatient facilities. Allegheny is part of Highmark Health.

As part of the deal, Allegheny, Highmark and Heritage Valley have announced a commitment of about $285 million over the next decade. The organizations said the money will finance the expansion of clinical services and facility improvements, including information technology.

In addition, Allegheny Health Network said all of Heritage Valley’s 3,000 workers will be employed with the system.

With the deal, Allegheny Health Network now operates 16 hospitals. The health system serves about half of Pennsylvania’s 67 counties and also serves patients in portions of New York, Ohio, and West Virginia. Allegheny Health Network now employs roughly 27,000 people.

David Holmberg, CEO of Highmark Health, said Heritage Valley is “a perfect fit for our organization.”

“In today's healthcare environment, strategic affiliations and collaborations are essential to preserving affordable, quality access for the patients, members and communities we serve,” Holmbert said in a statement. “As we grow, we prioritize relationships with organizations that share our values, our mission, and our goals of reinventing healthcare and creating remarkable health experiences.”

Mark Sevco, president of Allegheny Health Network, praised Heritage Valley’s service to patients in the Ohio Valley. He said in a statement that he is looking forward to the systems collaborating and learning from each other.

“Of the many important benefits this affiliation will bring to our organization, the opportunity to welcome so many outstanding additional caregivers into the AHN family, and in doing so further expand the reach of our many exceptional clinical programs, is what excites us most,” Sevco said.

Heritage Valley’s two hospitals are going to get rebranded. Heritage Valley Beaver and Heritage Valley Sewickley will be renamed AHN Beaver Hospital-Heritage Valley and AHN Sewickley Hospital-Heritage Valley. The two hospitals have a total of 540 beds.

The systems first announced a letter of intent to come together last October.

Heritage Valley had been facing some financial challenges. A year ago, Heritage Valley's Kennedy Hospital, just outside Pittsburgh, closed its doors. Fitch Ratings downgraded Heritage Valley from an “A” to an “A-” last year, citing the system’s financial losses.

Norm Mitry, Heritage Valley president and CEO, said the system’s staff was excited about the prospect of joining Allegheny Health Network.

“We could not be happier with the news today that we are now formally part of this great organization,” Mitry said in a statement.

“This affiliation secures the future of Heritage Valley, by not only preserving, but significantly strengthening the tradition of caring and clinical excellence that has defined our health system, and its people, for more than a century,” he said.

SEIU Healthcare Pennsylvania, which represents 400 nurses at Heritage Valley Beaver, issued a statement expressing support for the deal. The nurses are under contract through 2027.

“We will likely begin negotiations for a new union contract in the spring of 2027, with the shared goal of investing in, preserving and rebuilding the essential services our community deserves,” the union said.

Hospital merger activity has picked up compared to last year.

In the first quarter of 2026, there were 22 announced hospital mergers and acquisitions, according to data from Kaufman Hall, a healthcare consulting company. In all of 2025, there were 46 announced hospital mergers or acquisitions, which was the lowest number in 15 years.