Allegheny Health Network, Emerus Announce Joint Venture To Open Multiple Neighborhood Hospitals In Pennsylvania

Partnership to provide unique local access to convenient hospital, primary and specialty care

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Oct 19, 2017, 12:48 ET

HOUSTON, Oct. 19, 2017 /PRNewswire/ -- Emerus Holdings Inc., the nation's first and largest operator of neighborhood hospitals, entered into an agreement today to establish a new joint venture partnership with Allegheny Health Network (AHN), a Highmark Health Company that is an integrated health care delivery system serving the greater Western Pennsylvania region. The partnership will provide for construction of multiple facilities across the region that will provide unique local access to convenient hospital, primary and specialty care.

"Hospitals and health systems across the country are seeking innovative solutions to providing patients and communities with not only better access to care, but a more efficient model of care delivery," said Craig Goguen, Emerus CEO. "We are excited to partner with AHN and Highmark Health to help them accomplish that goal in the greater Pittsburgh area by bringing our unique hospital concept to life for the many people who rely on AHN for their comprehensive health care needs."

AHN will be among the first health systems east of the Mississippi to incorporate the unique Emerus neighborhood hospital concept into its care delivery model. These hospitals typically range from 15,000 to 60,000 square feet and may house an assortment of onsite clinical services, including an emergency department, 10-12 inpatient beds for observation and short-stay use, diagnostic care, primary and specialty care, and other complementary services. Unlike standalone emergency departments or urgent care centers, the facilities are fully licensed hospitals that are open 24/7 and able to accommodate some patients who require hospital-based services.

AHN and Emerus are initially planning to open four AHN neighborhood hospitals in the region over the next 18-24 months. Locations for the hospitals are expected to be finalized soon, with opening dates expected in early 2019.

"Our first and foremost priority is providing patients with the absolute best care experience possible, and it is immensely gratifying to be able to partner with an organization that shares those values," said Cynthia Hundorfean, AHN President and CEO. "The future of health care is local, and Emerus has an outstanding track record for delivering excellent, high-value clinical services in well managed, beautifully maintained neighborhood facilities. We look forward to adding its model to our diverse portfolio of facilities and programs."

Highmark Health and Emerus will share in the cost of constructing the new hospitals, with Emerus managing the facilities. In 2016, for the fourth consecutive year, Emerus received the prestigious Press Ganey Guardian of Excellence Award, which recognizes top-performing health care organizations that have consistently achieved the top 95^th percentile or above for exceptional patient experience.

"Today's announcement further underscores the magnitude of our commitment to the region and to developing a nationally leading, value-based health care system that is unsurpassed in the quality, accessibility and affordability of the services it provides," said David Holmberg, Highmark Health President and CEO. "Through our partnership with Emerus, and the other significant capital investments planned for AHN, we are building a patient-centric health care system of the future and taking every step necessary to ensure the network's exceptional care is more readily available to patients and our members in settings close to where they live and work."

ABOUT EMERUS

Emerus is the nation's first and largest operator of micro-hospitals. Emerus partners with leading health systems to provide excellence, empathy and innovation in health care delivery through a network of efficient, value-based micro-hospitals. The Emerus network brings high-quality, patient-centric acute episodic and ambulatory clinical services to communities across a given market. This helps patients by positioning best-in-class provider services in the communities where they work, live and play. Emerus' distinctive level of care earned the Guardian of Excellence Award for Superior Patient Experience in 2013, 2014, 2015 and 2016. More information is available at www.emerus.com.

ABOUT HIGHMARK HEALTH

Highmark Health, a Pittsburgh, PA based enterprise that employs more than 40,000 people nationwide and serves nearly 50 million Americans in all 50 states, is the second largest integrated health care delivery and financing network in the nation based on revenue. Highmark Health is the parent company of Highmark Inc., Allegheny Health Network, and HM Health Solutions. Highmark Inc. and its subsidiaries and affiliates provide health insurance to more than 5 million members in Pennsylvania, West Virginia and Delaware as well as dental insurance, vision care and related health products through a national network of diversified businesses that include United Concordia Companies, HM Insurance Group, Davis Vision and Visionworks. Allegheny Health Network is the parent company of an integrated delivery network that includes eight hospitals, more than 2,800 affiliated physicians, ambulatory surgery centers, an employed physician organization, home and community-based health services, a research institute, a group purchasing organization, and health and wellness pavilions in western Pennsylvania. HM Health Solutions focuses on meeting the information technology platform and other business needs of the Highmark Health enterprise as well as unaffiliated health insurance plans by providing proven business processes, expert knowledge and integrated cloud-based platforms. To learn more, please visit www.highmarkhealth.org.

ABOUT THE ALLEGHENY HEALTH NETWORK

Allegheny Health Network (www.AHN.org), a Highmark Health company, is an integrated healthcare delivery system serving the greater Western Pennsylvania region. The Network is composed of eight hospitals, including Allegheny General Hospital, its flagship academic medical center in Pittsburgh, Allegheny Valley Hospital in Natrona Heights, Canonsburg Hospital in Canonsburg, Forbes Hospital in Monroeville, Jefferson Hospital in Jefferson Hills, Saint Vincent Hospital in Erie, West Penn Hospital in Pittsburgh and Westfield Memorial Hospital in Westfield, NY. The Network provides patients with access to a complete spectrum of advanced medical services, including nationally recognized programs for primary and emergency care, cardiovascular disease, cancer care, orthopedic surgery, neurology and neurosurgery, women's health, diabetes and more. It also is home to a comprehensive research institute; Health + Wellness Pavilions; an employed physician organization, home and community based health services and a group purchasing organization. The Network employs approximately 17,000 people, has more than 2,800 physicians on its medical staff and serves as a clinical campus for Drexel University College of Medicine, Temple University School of Medicine, and the Lake Erie College of Osteopathic Medicine.