Colin G. McCulloch, Member of the Firm in the Health Care & Life Sciences practice, in the firm’s Washington, DC, office, was quoted in the Pittsburgh Post-Gazette, in “Next Up for Butler-Excela Merger: Picking a Name,” by Kris Mamula.

Following is an excerpt:

Hospital executives continue to mull a name for the Pittsburgh region’s newest health system, three months after the deal was inked, as the five-hospital merger wobbles into its first year.

But picking a name for the system created by the merger of Greensburg-based Excela Health and Butler Health System in Butler is not its biggest worry: Money woes, declining patient admissions and smothering competition from Pittsburgh’s two health care Goliaths — Allegheny Health Network and UPMC — are the more urgent issues at hand.

Whether the merger yields benefits, something Excela management says is already happening, may hinge on factors that don’t show up on a balance sheet, according to Colin G. McCulloch, partner at the Washington D.C. law firm of Epstein Becker Green, who was not involved in the transaction.

The Excela-Butler merger “looks more like a marriage of equals,” he said, “where success depends on the intangibles, the things you can’t measure with a calculator: How well do the boards get along? Does the leadership share the same culture? Do the medical staffs respect each other? You really need that chemistry.” …

Combined admissions and observation patients fell 7.2% to 6,883 at Butler and 7.6% to 12,183 at Excela for the six months ending Dec. 31. Fewer patients helped drive operating losses at Butler to $23 million on operating revenue of $226.7 million, and a $15.3 million operating loss at Excela on operating revenue of $324 million for the six months.

Butler’s losses also breached a Truist Bank loan covenant on a $20 million note that had a $15 million balance. Mr. Albanesi said negotiations with the bank were continuing, but Epstein Becker Green attorney Mr. McCulloch said the bank would have little to gain from penalizing Butler for the breach because of the system’s fragile finances.

Jump to Page

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.