CommonSpirit, UPMC to integrate Trinity Health in new agreement

CommonSpirit Health and the University of Pittsburgh Medical Center (UPMC) intend to integrate Trinity Health System into the UPMC system.

The health systems signed a non-binding letter of intent to negotiate an agreement between the organizations. 

Trinity Health System, a three-hospital system based in Steubenville, Ohio, is a member of CommonSpirit Health, one of the nation’s largest nonprofit health systems.

Earlier this year, CommonSpirit Health and Trinity Health System leadership initiated a search to identify a regional health system that could enhance the latter's services and clinical offerings, settling on UPMC during this process.

WHAT'S THE IMPACT 

Trinity Health System and UPMC said they plan to enhance and expand their services to the community under the new arrangement.

The move allows UPMC, which is headquartered in Pittsburgh, to expand into Ohio.

The two organizations highlighted a history of collaboration in several key areas including a partnership in local cancer treatment that extends UPMC Hillman Cancer Center’s medical oncology services to the local community. This partnership has brought improved cancer expertise and treatment to the area, Trinity said.

The entities have also worked together on advanced orthopedic services, leveraging UPMC’s expertise to deliver specialized bone and joint care.

Over the next several months, both entities will engage in discussions to work toward a definitive agreement, pending customary regulatory review and approvals. 

Trinity Health System and UPMC leaders hope to complete the affiliation “as soon as possible,” they said.

THE LARGER TREND 

In September, CommonSpirit Health reported an operating loss of $1.3 billion for the year, for a -3.9% margin.

CommonSpirit focused its efforts in Q4 on growth; reducing labor costs, including contract labor; enhancing revenue yield; optimizing length of stay; and continued value capture efforts.

Revenue was bolstered by an increase in patient volumes, which reached pre-pandemic levels in many of the health system's markets, CommonSpirit said. However, private and government reimbursements did not keep pace with increased costs of providing care to patients. 

The nonprofit health system operates more than 140 hospital health systems in 24 states. CommonSpirit also completed the acquisition of five hospitals and more than 40 clinics from a single, regional health system in Utah in May.