State Committee Tables WCA, UPMC Integration Decision
A state committee has tabled their decision on the WCA Hospital/UPMC integration to allow for more deliberation.
On Thursday, the Establishment and Project Review Committee for the state Public Health and Health Planning Council met to discuss several applications, including one from WCA. The application is for state approval for UPMC Chautauqua Services Inc. to become the active parent and cooperator of the hospital.
Betsy T. Wright, WCA Hospital president and chief executive officer, said there was a public comment period prior to the committee meeting, with some remarks being submitted late. With the new submissions, the committee decided to allow UPMC officials time to respond before making their decision. The committee will reconvene on Thursday, June 9, to make their decision. That is also the same day the full state Public Health and Health Planning Council will meet to make their decision.
”We’re confident we will receive approval on June 9,” Wright said.
Wright, who attended the committee meeting in New York City, said it was an exciting time because it was an opportunity to share WCA Hospital’s story and to discuss the benefits merging with UPMC will bring to the community. She said the story started back in 2010 when WCA’s Board of Directors and leadership explored strategic opportunities to enhance and expand the care the hospital provides while addressing the challenges of the changing health care field. One of the first steps taken was when WCA signed a strategic affiliation agreement with UPMC Hamot in August 2012, which started the partnership between the health care organizations.
In December, WCA and UPMC officials announced the signing of an affiliation to integrate agreement. If approved, 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.
”It was a fun day. I had a chance, and UPMC had a chance, to tell our story,” Wright said. ”We’re excited about the progress. We’re excited to be a part of (UPMC’s) system. We’re excited about the investment they’re going to make in the community.”
During the committee meeting, Wright said, besides UPMC and WCA officials, six to seven others also spoke, with some in opposition of the merger. According to emails sent to The Post-Journal from BerlinRosen Public Affairs, the Pennsylvania Health Access Network, also known as PHAN, opposes the deal. According to the PHAN’s website, they are a statewide coalition of more than 60 organizations representing the faith, legal services, public health, immigrant and disability rights communities. They works to protect high quality health insurance coverage for individuals and businesses and to expand coverage to the uninsured.
In a statement sent to The Post-Journal by BerlinRosen Friday, a Brocton resident, Carol Ames, also opposes the merger. According to the statement, Ames has worked for Brooks Memorial Hospital located in Dunkirk for three decades.
”We applaud the Public Health and Health Planning Council Establishment Committee’s vote to table UPMC’s proposed acquisition of WCA Hospital. UPMC’s record and business practices in New York and Pennsylvania have proven that this health care giant is focused on profits, not patient care. The council’s decision is a win for patients and residents across Chautauqua County and an important first step in ensuring this controversial deal gets the full, open, transparent discussion the people of Western New York deserve,” Ames said.
In March, it was announced Brooks Memorial would terminate an affiliation agreement with UPMC Hamot and enter into a partnership with Kaleida Health. At the same time it was announced TLC Health Network in Irving, the parent of Lake Shore Health Care Center, would be negotiating its own affiliation agreement with Kaleida. The Kaleida affiliation agreements were announced after the state awarded $57 million to help with restructuring the smaller hospitals, both of which have struggled financially in recent years.
Despite the opposition, Wright said the state Department of Health has recommended approval for the certificate of need for WCA and UPMC. According to the state Department of Health website, a certificate of need process governs establishment, construction, renovation and major medical equipment acquisitions of health care facilities, such as hospitals, nursing homes, home care agencies and diagnostic and treatment centers. The objectives of the certificate of need process is to promote delivery of high quality health care and ensure that services are aligned with community need. The certificate provides the Department of Health oversight in limiting investment in duplicate beds, services and medical equipment which, in turn, limits associated health care costs.
According to the state Health Department’s website, the state Public Health and Health Planning Council has a broad array of advisory and decision-making responsibilities with respect to state’s public health and health care delivery system. It is charged with adopting and amending the sanitary code and health care facility, home care agency and hospice operating regulations. The council also makes decisions concerning the establishment and transfer of ownership of health care facilities, home care agencies and hospice programs. It makes recommendations to the commissioner of health concerning major construction projects, service changes and equipment acquisitions in health care facilities and home care agencies. It also advises the commissioner on issues related to the preservation and improvement of public health.
The council’s Establishment and Project Review Committee is responsible for reviewing certificate of need applications involving construction, service changes, establishment and transfers of ownership. The committee reviews the establishment of fundraisers, corporate name changes and changes in certificates of incorporation.
Wright said before the June 9 meeting, the possible merger will also be reviewed by the state Office of Mental Health and the Office of Alcoholism and Substance Abuse Services.




