Heritage Valley Health System, a two-hospital integrated delivery network in Western Pennsylvania, and Ohio Valley Hospital have signed a letter of intent for Ohio Valley Hospital to join Heritage Valley Health System. By joining together, the organizations can further enhance their common mission of bringing cost-effective, high-quality care to their respective communities and best meet the health care needs of the region.
Heritage Valley Health System was unanimously chosen by Ohio Valley Hospital’s Board of Directors as its preferred partner following an eight-month long strategic planning process in which it considered a range of strategic options and partners. Juniper Advisory has served as Heritage Valley Health System’s exclusive advisor throughout this process, helping to develop and execute a proposal strategy and structure that was responsive to Ohio Valley Hospital’s stated objectives.
According to Ohio Valley Hospital’s announcement, the alignment with Heritage Valley Health System “will enable Ohio Valley Hospital to enhance its medical staff, expand clinical services and fund future capital projects”. Ohio Valley Hospital, like many independent community hospitals, has been challenged over past years by increasing operating costs and decreasing reimbursement.
Ohio Valley Hospital will become the third hospital in the Heritage Valley Health System, joining Heritage Valley Sewickley and Heritage Valley Beaver.
The organizations have now entered into a period of due diligence and expect to execute a definitive agreement this fall.