Washington, D.C.-based George Washington University, Medical Faculty Associates and King of Prussia, Pa.-based Universal Health Services have reached a definitive agreement regarding a new academic affiliation arrangement for George Washington University Hospital and Cedar Hill Regional Medical Center.
The deal will also cover the system’s affiliated outpatient sites and medical education and research at GW’s School of Medicine and Health Sciences, according to a May 26 news release. The majority of MFA physicians and staff are expected to be employed by Capital Medical Group, the new physician-led nonprofit with a UHS entity as its sole member. CMG will occupy most of MFA’s physical locations in an effort to maintain consistency in care sites.
CMG will also provide services to GW Hospital, Cedar Hill Regional Medical Center and affiliated outpatient sites.
“Today’s agreement is an important step forward for GW and the communities we serve,” Ellen Granberg, president of the George Washington University, said in the release. “It successfully safeguards the School of Medicine and Health Sciences’ missions of high-quality education and research, while providing for the funding and delivery of physician services at GW Hospital. In addition, this agreement provides financial certainty for the university and a sustainable path forward for the clinical operations at GW Hospital and its affiliates.”
The announcement comes after months of negotiations between the university and the physician group. Under the five-year, renewable agreement, GW will provide up to $230 million to support the transition to CMG’s care and absorb prior loans made to the MFA. UHS will assume full financial responsibility for clinical practice operations., which “provides GW with greater financial certainty and relieves it of any potential future need under the current agreement to absorb MFA’s losses,” which have totaled more than $450 million since 2022, according to the release.
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