George Washington University, Universal Health Services reach final contract deal

George Washington University and Universal Health Services (UHS) have reached a definitive agreement outlining a new academic affiliation for George Washington University Hospital and Cedar Hill Regional Medical Center. The deal, announced May 26, covers clinical services, outpatient sites, and medical education at GW’s School of Medicine and Health Sciences. Most Medical Faculty Associates (MFA) physicians and staff will transition to Capital Medical Group (CMG), a new physician-led nonprofit with UHS as its sole member. CMG will operate from MFA’s existing locations to maintain continuity of care at GW Hospital, Cedar Hill, and affiliated outpatient sites. The five-year agreement includes $230 million from GW to fund the transition and absorb prior MFA loans. UHS will take full financial responsibility for clinical operations, eliminating GW’s risk of absorbing future MFA losses, which exceeded $450 million since 2022. Ellen Granberg, GW’s president, called the deal a ‘step forward’ for the university and its communities, ensuring stable funding for education, research, and clinical services. Negotiations between GW and MFA spanned months before finalizing the arrangement. The agreement provides financial certainty for GW while securing a sustainable path for clinical operations at its affiliated medical centers.