Independence Health System is planning to merge with another healthcare system.
Earlier this morning, Independence Health System announced plans to merge with West Virginia Health System starting in the fall of next year.
The five hospitals under Independence Health, including Butler Memorial Hospital, and affiliated doctors will operate under the new “WVU Medicine” brand.
As part of the agreement, WVU Health System will commit $800 million over the next five years “to modernize Independence Health System” including Butler Memorial Hospital’s emergency room.
Officials say the move was made to expand access and strengthen financial sustainability.
“We are excited to make this announcement today in partnership with WVU Medicine, and even more excited to have our organization become part of a progressive and innovative health system that has a proven track record in making deep investments in its people, clinical programs, and infrastructure,” Independence Health System CEO Ken DeFurio said in a statement.
The release also said that the new healthcare system aims to “enhance patient outcomes through coordinated population health strategies through Peak Health,” which is WVU Health System’s affiliated health insurance organization.
Independence Health System has operated as a joint venture between Butler Health System and Excela Health since the merger closed in 2023. Since that time, the organization has worked to overcome financial struggles since the pandemic. Recently, Butler Health System, which still filed separate financial reports, had its Moody’s rating upgraded to stable from negative. Independence had reported a system operation loss of $42 million in 2024, with Butler Health System responsible for over $30 million in losses.
The sale is subject to federal review and bondholder consent.
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