GW, MFA and UHS Report Progress in Negotiations

University leaders shared a brief update on the status of negotiations among the George Washington University, the Medical Faculty Associates (MFA) and Universal Health Services (UHS).

As previously communicated, GW and UHS have been deeply engaged in discussions regarding a new academic affiliation arrangement that would affect both The George Washington University Hospital and Cedar Hill Regional Medical Center.

These discussions involve nuanced and complex issues related to financial terms, governance, academic services, faculty practice structure, facilities, and transition planning. The goal is to reach an agreement that would, among other things, provide continuity of care, preserve a sustainable and academically excellent enterprise for GW, and employ a majority of the MFA's clinical providers and staff.

While negotiations remain ongoing, leaders reported that meaningful progress has been made. The parties have reached agreement on the vast majority of substantive terms and are working through a few remaining points.

At this stage of the negotiations, the university is sharing additional important details about the proposed terms of the transaction. The items below are based on the agreements reached in principle that the parties are in the process of documenting.

Academic Medicine

• Commitment to learners: UHS will prioritize SMHS medical and health science student placements at GWUH and any affiliated outpatient sites.
• Stability for trainees: UHS will continue to serve as the primary clinical site for GW residents and fellows and residents and fellows will remain employed by GW.
• Leadership framework: The roles of SMHS academic chair and GWU Hospital service chief will be held by the same individual, unless otherwise determined after a consultation process.

Physician Practice at GWU Hospital and Cedar Hill

• UHS will establish a new, not-for-profit physician practice group that plans to offer employment to the majority of current MFA physicians and staff.
• The newly formed physician group will serve both GWUH and Cedar Hill as well as affiliated outpatient sites.
• The current agreement between UHS and GW regarding licensing, clinical operations, and research at Cedar Hill will be terminated.
• GW will pay the UHS faculty practice group for faculty academic effort, and GW and UHS will work together with chairs and chiefs to determine the annual allocation of clinical and academic effort.

While these are the latest terms and parties are close to a final agreement, they are not final. There is a commitment to sharing a summary of the key terms once the agreements have been finalized. After agreements are finalized, the parties will work toward implementing the transaction after a brief transition period, which is when the transaction will "close."

As GW works toward reaching this milestone, the university is focused on its unwavering commitment to excellence in education and research and in providing the highest quality health care to the citizens D.C. and beyond. Additional clarity will be provided as soon as possible. The parties expressed profound gratitude for the community's patience, professionalism and tireless dedication.

In addition future updates, information will continue to be posted on the MFA Connector intranet and on the SMHS website.