Kane Community Hospital and UPMC Sign Letter of Intent
Kane Community Hospital (KCH), the University of Pittsburgh Medical Center (UPMC) and UPMC Hamot announced Oct. 27 they have signed a Letter of Intent (LOI) to integrate KCH into the UPMC network.
KCH and UPMC Hamot, located in Erie, integrated in 2010 after a decade-long partnership that involved the extension of UPMC Hamot’s cardiology services, shared education and staffing, after-hours pharmacy coverage and a sophisticated telemedicine program. After closer analysis of the future of health care for Kane, the KCH board members and leaders decided that a partnership that more fully integrates KCH into the UPMC Health System, by more closely aligning the governance, management, and operations of Kane and UPMC Hamot, ensures superior quality and continued access to health care for the entire region.
The LOI, recently approved by KCH, UPMC Hamot and UPMC board members, enables KCH to provide the community with the specialty expertise and resources of UPMC, a world-class academic medical center and integrated health care delivery and finance system currently ranked No. 12 on the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals.
“We continue to advance health care in our community as we move closer toward a full and complete affiliation with UPMC that will make Kane Community Hospital part of the UPMC system, “J. Gary Rhodes, Kane Community Hospital president, said.
As part of the signed agreement, UPMC Hamot has committed to invest up to $1 million annually over the next five years to fund capital projects at KCH. UPMC Hamot will also support Kane’s construction of a proposed $6 million physician office building. UPMC Hamot and Kane will be operated by a single management team and will work to grow outpatient services in the Kane service area.
The affiliation agreement is contingent upon a due diligence period and regulatory approvals. Due diligence includes a thorough review of key areas such as operations, finances, capital expenditures, physician recruitment, contractual commitments, quality and performance measures, and more. The due diligence process is expected to be fully complete in the spring of 2017. At that point, Kane Community Hospital would function as a direct subsidiary of UPMC Hamot.
About Kane Community Hospital
Kane Community Hospital (KCH), in affiliation with UPMC Hamot, provides advanced specialty medical care to the greater Kane community. KCH is a 31-bed acute care hospital in Kane, Pa., offering emergency, inpatient, and outpatient medical services.
About UPMC Hamot
A regional referral hub with the only Level II Trauma Center in northwestern Pennsylvania, UPMC Hamot is a 443-bed hospital in Erie that also includes state-of-the-art Magee-Womens, UPMC Hamot, devoted to meeting the comprehensive health care needs of women and infants in the community. One of Erie County’s top three employers, UPMC Hamot provides more than $26 million annually in benefits to the community, including $16.3 million in free and reduced-cost care to the area’s most vulnerable citizens. Becoming part of the UPMC network in 2011 has enabled UPMC Hamot to provide world-class care with access to some of the nation’s leading health care providers and the latest technological advancements.
A world-renowned health care provider and insurer, Pittsburgh-based UPMC is inventing new models of patient-centered, cost-effective, accountable care. It provides nearly $900 million a year in benefits to its communities, including more care to the region’s most vulnerable citizens than any other health care institution. The largest nongovernmental employer in Pennsylvania, UPMC integrates 60,000 employees, more than 20 hospitals, more than 500 doctors’ offices and outpatient sites, and a 3 million-member Insurance Services Division, the largest medical and behavioral health services insurer in western Pennsylvania. Affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC ranks No. 12 in the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals. UPMC Enterprises functions as the innovation and commercialization arm of UPMC while UPMC International provides hands-on health care and management services with partners in 12 countries on four continents.