In 1999, West Penn Hospital acquired four hospitals through a merger with Allegheny Health Education and Research Foundation (AHERF), another Pittsburgh area health care provider. The transaction was related to AHERF's July 1998 bankruptcy and bond default (described as "the largest nonprofit health system bankruptcy in US history"). To avoid a bankruptcy liquidation of AHERF, the four Pittsburgh-area hospitals - Allegheny General, Forbes, Allegheny Valley and Canonsburg - merged with West Penn Hospital. In exchange, West Penn made a $25 million payment to AHERF's creditors, who agreed to release the AHERF hospitals from liability for all claims. The new system was known as the West Penn Allegheny Health System (WPAHS).
