Kaufman Hall Advises Susquehanna Health on Potential Affiliation with UPMC

SKOKIE, Ill. – May 6, 2016 – Susquehanna Health and University of Pittsburgh Medical Center (UPMC) have signed a letter of intent to pursue an affiliation to expand healthcare services and advance quality care for the people of north central Pennsylvania.

Kaufman Hall’s advisory role commenced with an assessment and evaluation of Susquehanna’s current market, strategic and financial position, and recommendations on future repositioning strategies and potential strategic partnership options, including the option to remain as an independent entity following a new strategic plan.

While Susquehanna is a financially strong health system, the Board of Directors and leadership team recognized that joining forces with a larger health system can strengthen access to leading clinical quality capabilities, grow services in the community, and better position the organization for a new population health model.

Kaufman Hall led a process to identify a partner that would fulfill Susquehanna’s goals and objectives. A group of more than 35 potential strategic partners were identified. Kaufman Hall led the overall planning and timing for the partnership process, prepared all documents, interviews, and led the negotiation of a letter of intent.

Susquehanna will now hold exclusive, detailed discussions with UPMC about how the two health systems can work together.  Both organizations have begun the due diligence process to work toward a definitive agreement to affiliate.  During this time period, nothing changes for patients and their families, employees and physicians at Susquehanna Health.

“We could not be more pleased that UPMC, one of the nation’s pre-eminent academic medical centers, is the system selected to move forward with us in this process.  This is a natural evolution of our 25-year history of successful partnerships to better serve our community,” said Susquehanna Health President & CEO Steven P. Johnson.

“Looking ahead to the changing healthcare environment of the future, we see great opportunities to combine the strength of both organizations to improve the health and well-being of our region” Johnson added.

To learn more about how Kaufman Hall is assisting healthcare organizations with partnership decisions and transactions, contact Bryan Burgett, Senior Vice President at bburgett@kaufmanhall.com.