University of Pittsburgh Medical Center and Butler (Pa.) Health System formed a joint venture to acquire Butler-based Tri Rivers Surgical Associates, according to a Pittsburgh Business Times report.
Here are four things to know:
1. The practice will be renamed Tri Rivers Musculoskeletal Centers when the transaction is completed. It is expected to close Jan. 1.
2. The deal allows Tri Rivers' physicians to continue treating patients with Highmark, UPMC Health Plan and other health insurance plans. This is a change from acquisitions of this type, as typically the acquired entity becomes an out-of-network provider for either Highmark or UPMC Health Plan.
"We have no desire to walk away from our patient population," Kelly Agnew, MD, Tri Rivers' president and managing partner, said to the Pittsburgh Business Times. "We won't ever have to ask a Highmark patient to go elsewhere for care."
3. Tri Rivers opened it first Butler office in 1994 and today includes six offices, 21 physicians and 17 healthcare workers. Its physicians hold various leadership roles with both UPMC and BHS hospitals.
4. Tri Rivers began negotiations with UPMC a year ago, said Dr. Agnew. The practice's goal was to "allow growth without restricting patient access to the medical practice," according to the report. BHS joined in the negotiations at a later date.
Hospital or health system acquisition of a practice or affiliations are not uncommon. For example, Cedars-Sinai Health System in Los Angeles recently finalized an agreement to affiliate with Kerlan-Jobe Orthopaedic Clinic in Los Angeles and Santa Monica (Calif.) Orthopaedic and Sports Medicine Group.
However, it is unusual to see two competing health systems come together to acquire a practice. Pennsylvania is home to a number of big health systems with well-respected orthopedic practices, such as Rothman Institute, Penn Orthopaedics or Lancaster General Health's Orthopedic Center. It is unclear how this move by UPMC and BHS will affect the market for orthopedic services in Pennsylvania.
More articles on orthopedics:
Dr. Timothy Beck to lead Walk With a Doc event
NFL, NBC News feature Dr. Ron Hugate in film series
5 things to know about predictors for early ACL revision surgery