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Merger Receives Two Approvals

WCA Hospital has received approval from two more state agencies to integrate with UPMC.

On Thursday, Andrew O’Brien, WCA Hospital director of chemical dependency, said during a Health Care Action Team meeting that WCA Hospital has received approval from the state Office of Mental Health and state Office of Alcoholism and Substance Abuse Services to merge with UPMC Hamot.

In June, Betsy Wright, WCA Hospital president and chief executive officer, said both state agencies wanted to know if WCA would continue to offer both inpatient and outpatient clinical services after integrating with UPMC.

”The two agencies provide oversight to both programs,” Wright said. ”They want to know if we will be continuing our services. The answer is, ‘Absolutely we are.”’

In June, Wright said once WCA and UPMC receive approval from the state Office of Mental Health and state Office of Alcoholism and Substance Abuse Services that most of the regulatory process for the merger would be concluded.

”We are still identifying any additional licensing we need to get approved,” she said. ”We are still looking at the end of the summer, fall time (for integration completion). Definitely by the end of the year, (we will) close the transaction.”

Earlier this year, WCA Hospital and UPMC received the OK to integrate from the state Public Health and Health Planning Council.

In December 2015, WCA and UPMC officials announced the signing of an affiliation to integrate agreement. WCA Hospital will be the first New York state hospital to integrate with UPMC. The new title for the health care facility will be UPMC Chautauqua at WCA.

As part of the agreement, UPMC has committed investing at least $25 million during the next 10 years to support enhancements at WCA. UPMC has also agreed to relieve WCA’s debt and cover its pension obligations, freeing up money for WCA capital improvements. The integration will also bring additional specialty services and programs to WCA Hospital.

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