GW, MFA and UHS Finalize Agreement to Transition Clinical Operations to Capital Medical Group
The George Washington University (GW), Medical Faculty Associates, Inc. (MFA), and Universal Health Services, Inc. (UHS) have reached a definitive agreement that establishes a long-term framework for patient care delivery, physician staffing and academic medicine at GW Hospital, Cedar Hill Regional Medical Center and affiliated outpatient facilities across the Washington metropolitan region.
The agreement represents a major restructuring of clinical operations tied to GW’s academic medical enterprise and is designed to ensure continuity of patient care while preserving the teaching and research missions of GW’s School of Medicine and Health Sciences (SMHS).
At the center of the transition is the formation of Capital Medical Group, a newly created physician-led not-for-profit organization affiliated with UHS. The majority of MFA physicians and staff are expected to transition to direct employment with Capital Medical Group, allowing many healthcare professionals to continue practicing in the same facilities and communities where they currently serve patients.
Leaders from GW, MFA and UHS described the agreement as a collaborative effort focused on stabilizing physician practice operations, maintaining educational excellence and supporting the long-term healthcare needs of the District of Columbia and surrounding communities.
New Structure Prioritizes Continuity of Care
Under the agreement, Capital Medical Group will provide clinical services to GW Hospital, Cedar Hill Regional Medical Center and related outpatient sites. The organization is expected to occupy many of the same physical locations currently operated by MFA, particularly in the Foggy Bottom area, minimizing disruption for patients and preserving access to familiar providers and care settings.
Officials emphasized that patient continuity was a central priority throughout negotiations.
By retaining many of the same physicians, specialists and staff members in existing practice locations, the transition aims to create a seamless experience for patients while strengthening operational support for healthcare delivery across the system.
Capital Medical Group will function as a physician-led nonprofit organization, with a UHS entity serving as its sole member. Through this structure, UHS will gradually assume operational and financial responsibility for physician practice operations associated with GW Hospital and Cedar Hill Regional Medical Center.
The agreement establishes a five-year renewable framework that provides financial stability while allowing clinical services to continue uninterrupted.
Preserving GW’s Academic Mission
While clinical operations are transitioning to the new provider group, GW leaders stressed that the university’s academic mission remains fully intact.
Faculty members who move to Capital Medical Group will retain their faculty appointments within GW’s School of Medicine and Health Sciences. They will continue teaching medical students, training residents and fellows, mentoring researchers and participating in academic research initiatives.
The agreement also preserves both Undergraduate Medical Education and Graduate Medical Education programs connected to GW Hospital. Residents and fellows will continue to train within the hospital system, and GW will remain the sponsoring and accrediting institution for graduate medical education programs.
University officials stated that continued investment in medical education is critical to sustaining the next generation of physicians and healthcare professionals.
GW President Ellen M. Granberg described the agreement as a meaningful step forward that balances patient care, academic excellence and long-term financial sustainability.
According to Granberg, the arrangement safeguards the teaching and research missions of the School of Medicine and Health Sciences while ensuring physician services remain available at GW Hospital and affiliated clinical sites.
She also noted that the agreement provides greater financial certainty for the university and creates a sustainable operational path for the healthcare system moving forward.
MFA Leaders Emphasize Patient-Focused Transition
MFA leadership highlighted the organization’s decades-long role in delivering patient care across the Washington, D.C. region and described the transition as an effort to protect both healthcare quality and workforce stability.
Bill Elliott, Chief Executive Officer of MFA, said physicians and staff have spent nearly 30 years providing specialized care while simultaneously supporting medical education and advancing clinical research within one of the country’s leading academic medical environments.
He stated that maintaining high-quality patient care and ensuring continuity for patients remained key priorities throughout the agreement process.
The transition also includes support for employees and operational functions that may not move directly into Capital Medical Group. GW has committed to funding an orderly transition process to help affected staff members and patients during the restructuring period.
UHS to Expand Role in Clinical Operations
Universal Health Services, which already operates GW Hospital, will significantly expand its involvement under the new structure.
Jason Barrett, Group Vice President for the DC Region at UHS and CEO of GW Hospital, said the agreement creates a collaborative framework that supports physicians, clinicians and staff while also preserving the educational and research excellence associated with GW’s medical school.
Barrett added that the arrangement is expected to accelerate the growth of inpatient and outpatient medical services at Cedar Hill Regional Medical Center, including broader community physician participation and expanded healthcare access.
UHS leaders said the organization remains committed to delivering high-quality care across multiple specialties and service lines while investing in healthcare infrastructure throughout the region.
Financial Framework and Long-Term Stability
A significant component of the agreement involves financial restructuring and investment.
Over the next five years, GW will provide up to $230 million to support the transition to Capital Medical Group and absorb previous loans made to MFA. University officials described the investment as a commitment to preserving healthcare services, medical education and research within the District of Columbia.
The funding will also support physicians, advanced practice providers and staff members transitioning into the new organization.
At the conclusion of the five-year period, UHS is expected to assume full financial responsibility for clinical practice operations. This shift reduces the likelihood that GW would need to absorb future operational losses tied to physician practice management under the prior arrangement.
The new financial structure is intended to create a more sustainable operational model for both the university and the healthcare system.
Research and Community Engagement to Continue
The agreement also addresses the continuation of medical research and community partnerships.
GW and UHS are currently developing operational procedures and access systems that will allow research activities to continue at GW Hospital and affiliated outpatient sites following the transition.
As under the current model, GW will continue conducting federally sponsored, industry-sponsored and independent research projects at facilities outside of GW Hospital, Cedar Hill Regional Medical Center and associated outpatient centers.
Community engagement efforts are also expected to continue, particularly in Washington’s Ward 7 and Ward 8 communities. GW officials stated that the university remains committed to educational partnerships, healthcare outreach and community health initiatives connected to Cedar Hill Regional Medical Center.
Healthcare leaders believe the agreement creates opportunities to strengthen access to care in underserved communities while preserving academic medicine’s role in improving public health outcomes.
Transition Process Underway
The transaction is expected to close later this summer, pending customary closing conditions.
Between now and the completion date, the organizations will work together to implement transition plans focused on minimizing disruption for patients, healthcare workers, students and researchers.
Officials from all three organizations said collaboration during the transition period will be essential to ensuring continuity across patient care services, medical education programs and ongoing research activities.
The agreement marks one of the most significant healthcare operational restructurings tied to GW’s academic medical system in recent years and reflects broader trends in healthcare partnerships between academic institutions and hospital operators.
By combining physician-led care delivery with long-term operational support from UHS, the organizations aim to create a stable and sustainable healthcare model capable of supporting patient care, physician training and clinical innovation for years to come.
About Universal Health Services, Inc.
One of the nation’s largest and most respected providers of hospital and healthcare services, Universal Health Services, has built an impressive record of achievement and performance, growing since its inception into a Fortune 300 corporation. Headquartered in King of Prussia, PA, UHS has 101,500 employees. Through its subsidiaries, UHS operates 30 acute care hospitals, 346 behavioral health facilities, 168 outpatient facilities and ambulatory care access points in 40 U.S. states, Washington, D.C., Puerto Rico and the United Kingdom.
