COUDERSPORT, Pa. – Cole Memorial announced today they have signed a Letter of Intent
(LOI) to integrate Cole Memorial into the University of Pittsburgh Medical
Center (UPMC) network with UPMC Susquehanna.
UPMC Susquehanna,
integrated with UPMC in October 2016, will provide management services to what
would become UPMC Cole. UPMC Susquehanna’s close geographic distance to Cole
and historical working relationship will allow for a seamless evolution.
Cole Memorial is no
stranger to UPMC. For almost 10 years they’ve partnered with UPMC Hamot in Erie
for cardiology services, shared clinical education and cardiologists through
Medicor Associates. After a careful analysis and many mission-focused meetings,
board members and leaders are now
conducting further discussions with UPMC and continuing the due diligence
process to work toward a definitive affiliation agreement.
The LOI, recently
approved by UPMC and Cole Memorial board members, enables Cole Memorial to
provide the community with the specialty expertise and resources of UPMC, a
world-class academic medical center and integrated health care delivery and
finance system currently ranked No. 12 on the prestigious U.S. News & World
Report annual Honor Roll of America’s Best Hospitals.
“This is an exciting day for Cole Memorial, our
staff, physicians and patients,” said Cole Memorial’s President and CEO Ed
Pitchford. “As part of UPMC, we will be able to strengthen our health system
for the future, keep vital medical services in our communities and preserve
jobs. We will also have wonderful new opportunities to advance health care
throughout northcentral Pennsylvania, improving the health and wellbeing of
people in the communities we serve. We are thrilled with our selection of UPMC.
Together, we have great opportunities to transform how health care is delivered
in this region and strengthen the network of medical services provided here for
generations to come.”
As part of the
signed agreement, UPMC would seek the ongoing input, advice and direction from
the regional Cole Memorial Board of Directors and support Cole’s outstanding
debts and make ongoing investments of at least $27.5 million dollars over the
next seven years including a complete upgrade to Cole’s information technology
platforms. Future gifts and grants to the Cole Foundation or directly to Cole would
supplement those minimum investments. In addition, UPMC would assist with
recruiting efforts and deploy various technologies to keep Cole modern and
efficient going forward. Cole would also lower its costs by being able to capitalize
on UPMC’s resources and capabilities.
UPMC Susquehanna
President & CEO Steven P. Johnson said, “The people of Potter County and
neighboring counties benefit by being part of a network committed to advancing
care and growing services. UPMC is one of the nation’s pre-eminent academic
medical centers and above all, it is a compatible fit to Cole’s patient-centered
culture. UPMC Susquehanna is energized to move forward together with UPMC Cole
to provide advanced and compassionate care to northcentral Pennsylvania.”
The affiliation
agreement is contingent upon a due diligence period and regulatory approvals.
Due diligence includes a thorough review of key areas such as operations,
finances, capital expenditures, physician arrangements, contractual
commitments, quality reports, performance measures and more. The process is
expected to be fully complete before winter of 2017.
