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‚ÄčKane Community Hospital and UPMC Sign Letter of Intent

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10/27/2016

KANE, Pa., Oct. 27, 2016 – Kane Community Hospital (KCH), the University of Pittsburgh Medical Center (UPMC) and UPMC Hamot announced today they have signed a Letter of Intent (LOI) to integrate KCH into the UPMC network.

KCH and UPMC Hamot, located in Erie, integrated in 2010 after a decade-long partnership that involved the extension of UPMC Hamot’s cardiology services, shared education and staffing, after-hours pharmacy coverage and a sophisticated telemedicine program.  After closer analysis of the future of health care for Kane, the KCH board members and leaders decided that a partnership that more fully integrates KCH into the UPMC Health System, by more closely aligning the governance, management, and operations of Kane and UPMC Hamot, ensures superior quality and continued access to health care for the entire region.

The LOI, recently approved by KCH, UPMC Hamot and UPMC board members, enables KCH 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.

“We continue to advance health care in our community as we move closer toward a full and complete affiliation with UPMC that will make Kane Community Hospital part of the UPMC system, “J. Gary Rhodes, Kane Community Hospital president, said.

As part of the signed agreement, UPMC Hamot has committed to invest up to $1 million annually over the next five years to fund capital projects at KCH. UPMC Hamot will also support Kane’s construction of a proposed $6 million physician office building.  UPMC Hamot and Kane will be operated by a single management team and will work to grow outpatient services in the Kane service area.

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 recruitment, contractual commitments, quality and performance measures, and more. The due diligence process is expected to be fully complete in the spring of 2017. At that point, Kane Community Hospital would function as a direct subsidiary of UPMC Hamot.

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