WVU Health System, Independence Health System Reach Settlement With Pennsylvania AG on Planned Acquisition

The settlement deal, filed in state court on August 31 and shared by the Pennsylvania Attorney General’s Office on September 3, includes provisions requiring WVU Health System to notify the office of any significant service changes at Independence facilities.

West Virginia University Health System and Independence Health System have reached a settlement with the Pennsylvania Attorney General’s Office over their planned acquisition, with the agreement requiring WVU Health System to maintain the Independence hospitals and facilities for at least five years.

The settlement deal, filed in state court on August 31 and shared by the Pennsylvania Attorney General’s Office on September 3, includes provisions requiring WVU Health System to notify the office of any significant service changes at Independence facilities.

WVU Health System must also implement policies to prevent competitively sensitive information from flowing between its insurance and provider subsidiaries, maintain charity care and financial assistance policies, and negotiate in good faith with payers, among other terms outlined in the agreement.

“When hospital systems change ownership, there is always the potential for impacts on patient access to care,” Attorney General Sunday said. “The Excela and Butler Health Systems served numerous Pennsylvanians and families in several counties, so we wanted to be sure those people were not harmed by this transaction. This agreement maintains access to high-quality health care services for the communities served by the hospitals.”

The planned acquisition, announced in November 2025, would add Independence’s five hospitals to WVU Health System, bringing the academic health system to 30 hospitals. The transaction also includes Independence’s affiliated physician groups and other subsidiaries, which are expected to operate under the WVU Medicine brand.

In June, the organizations signed a definitive agreement after conducting extensive due diligence and obtaining some of the required regulatory approvals. The systems expect the combination to close in late September or early October, pending the remaining regulatory clearances.

Under the deal, WVU Health System has committed to an $800 million, five-year investment to expand clinical services and modernize facilities at Independence, including the emergency room at Butler Memorial Hospital and the Westmoreland Hospital campus.

“This agreement secures a stronger future for our hospitals, our caregivers and the patients who depend on us,” Ken DeFurio, president and CEO of Independence Health System, said in June. “It brings the scale, capital and clinical strength needed to protect local access to care and positions this region for long-term growth.”

Independence Health System operates five hospitals with 925 beds, employs nearly 7,000 people and has a network of about 1,000 physicians and advanced practice providers across 10 counties serving roughly 750,000 residents.

The system was formed in 2023 through the merger of Excela Health and Butler Health System. For the fiscal year ended June 30, 2025, it reported more than $1.2 billion in total unrestricted revenues and a $19.5 million operating loss.

WVU Health System currently spans 25 hospitals, employs 35,000 people and has about 4,600 providers. It reported $6.8 billion in total operating revenues for the fiscal year ended December 31, 2024.

“I am grateful to Ken, his leadership team, and the Independence Health System board 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,” Albert L. Wright, Jr., president and CEO of the WVU Health System, said. “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.”

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