KANE — Kane Community Hospital, the University of Pittsburgh Medical Center and UPMC Hamot announced on Thursday they have signed a letter of intent to integrate Kane Community Hospital into the UPMC network.

Kane Community Hospital and UPMC Hamot 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 Kane Community board members and leaders decided that a partnership that more fully integrates the hospital 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 letter of intent, recently approved by Kane Community, UPMC Hamot and UPMC board members, enables the Kane hospital to provide the community with the specialty expertise and resources of UPMC, a world-class academic medical center and integrated healthcare delivery and finance system currently ranked No. 12 on the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals, officials said.

“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,” said Kane Community Hospital President J. Gary Rhodes.

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 Kane Community. UPMC Hamot will also support Kane’s construction of a proposed $6 million physician office building.  

Officials said UPMC Hamot and Kane will be operated by a single management team and 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 completed in the spring of 2017. At that point, Kane Community Hospital would function as a direct subsidiary of UPMC Hamot.