BHS to shift heart care to a private practice

Butler Health System is moving some of its heart care services to a private practice based in West Virginia, affecting about 2,500 patients.

In a statement, BHS, a subsidiary of five-hospital Independence Health System, said the shift of services provided at Butler Medical Providers cardiac services group will “enhance the spectrum of care and services we provide.” Regional Cardiac Arrhythmia in Weirton, which has eight offices, including ones in Jefferson Hills, Uniontown and Sharon, will take over cardiac device monitoring and other services of the practice Jan. 1.

“We anticipate this will be a seamless transition,” health system spokesman Tom Chakurda said.

The non-cash deal was unrelated to ongoing cost-containment efforts at Independence, Mr. Chakurda said. Health care services at Excela Health in Westmoreland County will not be affected.

Butler Medical Providers specialize in electrophysiology, which involves monitoring and treating irregularities in the heart’s tiny electrical impulses. The heart muscle’s electrical “circuitry” is monitored by implantable pacemakers, defibrillators and other devices.

Four nurses were among Butler Medical Providers’ staff, all of whom have found jobs outside the system, according to Richard Levandoski, 36, of Apollo, who had worked at Butler Health System for six years.

Mr. Chakurda said about 2,500 patients will be affected by the change. Regional Cardiac Arrhythmia doctors accept Highmark and UPMC Health Plan insurance, so most patients will not be affected by the switch in providers.

The nurses will receive payment for vacation days they haven’t taken, but Mr. Levandoski said BHS has denied his request to be paid for 185 hours of accrued sick time, which is equal to about $8,000.

“I feel I’m entitled to it,” he said. “I earned it.”

BHS said Mr. Levandoski and the other registered nurses were offered jobs with Regional Cardiac Arrhythmia.

BHS continues to offer cardiovascular surgery and related heart services at Butler Memorial Hospital and clinics in Clarion and Kittanning.

Separately, Independence has reached an agreement with Truist Bank of Charlotte, N.C., to waive a loan’s debt service coverage covenant as negotiations continue to reach similar terms with health system bondholders. BHS owes about $15 million of a $20 million loan drawn from Truist in 2015 to construct a medical office building.

BHS also floated a $90.6 million bond issue in 2015, which matures in 2039. Without the waivers, BHS faces immediate repayment acceleration of its debts.

In a prepared statement, Independence Chief Financial Officer Tom Albanesi said all principal and interest payments on BHS debt were current. Ratings agency Moody’s Investors Services Inc. expressed confidence BHS would get the necessary loan waivers.

“It is our expectation that Butler will secure the waivers,” Moody’s wrote last month. BHS had an operating cash flow loss of 5.6% for the three months ending Sept. 30, which Moody’s called a “low point in operating performance.”

“Butler still has sufficient cash to cover debt liabilities although cash reserves are expected to decline further as a result of ongoing cash flow losses,” Moody’s wrote.