HARRISBURG – Attorney General Dave Sunday and the Office of Attorney General’s Antitrust Section announced a court-approved settlement that will protect patients, physicians, and health plans potentially impacted by Allegheny Health Network’s (AHN) recent acquisition of Heritage Valley Health Systems (HVHS).
The Office of Attorney General thoroughly reviewed the transaction and outlined a number of conditions — including the continued operations of facilities in Beaver County — that AHN agreed to, and were recently approved by a court in the form of a settlement.
“When hospital systems change ownership, there is always the potential for impacts on access to care,” Attorney General Sunday said. “The hardworking staff in my office negotiated an agreement that protects access to high-quality health care services for these western Pennsylvania communities and ensures those services remain available for at least the next decade.”
The settlement agreement includes but is not limited to the following:
- The parties will continue to provide quality and affordable health care services in Beaver and Allegheny counties; maintain Beaver Hospital and its services so long as there continues to be sufficient demand for the hospital services; and maintain Sewickley Hospital for at least 5 years.
- The parties will not terminate the UMPC/HVHS Cancer Center Joint Venture which provides radiation oncology services to the community except for cause.
- The parties will not terminate any existing Health Plan contracts except for cause.
- The parties will negotiate in good faith with Health Plans for renewal of HVHS existing contracts and for new contracts and agree to the single last best offer arbitration if they cannot reach a contract with a Health Plan.
- The parties will not engage in any anticompetitive contracting with Health Plans, such as prohibiting tiering and steering to low-cost providers, most favored nation clauses, all or nothing contracting, prohibiting price transparency, and charging fees that have not historically been charged.
- The parties will maintain open medical staff with qualified physicians being eligible for staff privileges and having access to operating rooms.
- The parties’ physician referrals should be based on a patient’s best medical interests in the physician’s judgment and on a patient’s preference, and not on any financial incentives of the parties.
- The parties will honor all existing employment agreements with HVHS Health Care Providers, and any restrictive covenants will be treated in accordance with Pennsylvania’s Fair Contracting for Health Care Practitioners Act. For 30 days post-closing, any HVHS Health Care Providers who choose not to continue employment, will be released from any restrictive covenant in their employment agreement so they may freely pursue medical practice in the community.
- The parties may not discriminate based on a patient’s method of payment.
- The parties will submit an annual report to the Office of Attorney General outlining their compliance with the Court approved settlement.
This settlement was filed in the United States District Court for the Western District of Pennsylvania on June 24, 2026, and approved by the Court on June 26, 2026.
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