West Virginia health system plans to acquire 5 Pa. hospitals

The Independence Health System in western Pennsylvania has decided it’s better to join forces with a partner.

The West Virginia University Health System has announced plans to acquire Independence, which operates five hospitals in western Pennsylvania.

The WVU Health System also says it will invest $800 million over the next five years to improve Independence’s hospitals and expand clinical services. Regulators must approve the deal, but officials say they hope to complete the transaction in the fall of 2026.

Albert L. Wright, Jr., president and CEO of the West Virginia University Health System, said in a statement that he’s looking forward to adding Independence’s five hospitals to the system.

“Today marks the beginning of what I’m confident will be an exciting and rewarding journey, one grounded in our shared commitment to our mission, our patients, and the communities we serve," Wright said.

Independence serves more than 750,000 residents across 10 counties in western Pennsylvania, just outside the city of Pittsburgh. Its service area isn’t far from the Pennsylvania-West Virginia border.

The system operates Butler Memorial Hospital, Clarion Hospital, Frick Hospital, Latrobe Hospital and Westmoreland Hospital. The five hospitals have a combined total of 925 beds, with Westmoreland (349 beds) and Butler (249 beds) being the largest. Independence employs more than 7,000 workers.

Independence leaders touted the benefits of joining a strong academic health system. Ken DeFurio, president and CEO of Independence Health System, said joining the WVU Health System helps ensure the system’s long-term viability.

“This is a transformational moment for our organization as we take this first, critical step toward building a new future with a nearby health system that shares our values and is community focused,” DeFurio said in a statement.

He praised the WVU Health System as “a progressive and innovative health system that has a proven track record in making deep investments in its people, clinical programs, and infrastructure.”

For his part, Wright said he appreciated Independence’s leaders “for the trust they are placing in us to ensure their five hospitals continue to serve as community pillars and beacons of hope for generations to come.”

Independence Health System faces two large competitors in western Pennsylvania: UPMC and the Allegheny Health Network. And both systems have been growing.

UPMC completed the acquisition of the Washington Health System and its two hospitals last year, and the system has partnered with GoHealth Urgent Care to open 81 locations in Pennsylvania and West Virginia. Allegheny, which is part of Highmark Health, said last month it has reached a deal to acquire the Heritage Valley Health System. Allegheny also opened its Wexford Hospital, which is not far from Butler Memorial, in 2021.

Independence was created in 2023 with the merger of the Butler Health System and Excela Health, forming a system with $1 billion in revenue.

The WVU Health System has expanded significantly over the past decade. The system now includes 25 hospitals and boasts $7 billion in revenues and 35,000 employees. The system has more than 3,400 licensed beds, including J.W. Ruby Memorial Hospital, an academic medical center with 880 beds.

The system is also in the midst of building a new cancer hospital and a new eye institute.

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