Medical Faculty Associates plans to terminate 105 Virginia workers

Medical Faculty Associates, or MFA, a Washington, D.C.-based group of 700 providers that care for patients through over 50 medical specialties, plans to transition most of its clinical service platform to Capital Medical Group, according to a July 8 notice to the state.

Capital Medical Group, or CMG, is a newly launched physician-led nonprofit affiliate of Universal Health Services, a Pennsylvania-based provider of hospital and healthcare services. MFA recently reached an agreement to transition the majority of MFA’s clinical service platform to CMG.

“Many of the MFA’s employees received and accepted offers of employment to join CMG following the closing of the transaction,” MFA CEO Bill Elliott wrote in a letter sent in compliance with the Worker Adjustment and Retraining Notification Act, a federal law that ensures advance notice in cases of qualified plant closings and mass layoffs.

Following the transaction’s closing, or if the transaction does not close, MFA will wind down its operations, according to the notice.

Under this framework, CMG will provide clinical services to GW Hospital and Cedar Hill Regional Medical Center, both in Washington, D.C., as well as affiliated outpatient sites.

On Sept. 6, or within a couple of weeks of that date, MFA expects to terminate employees at several locations, including its facilities in Alexandria, Arlington County, Reston and Ashburn, according to the state notice.

About 1,270 employees at MFA will be impacted, according to the letter. The Virginia Department of Workforce Development and Advancement website states 105 Virginia employees will be affected.

MFA, George Washington University and Universal Health Services did not immediately respond to requests for comment.

The employees do not belong to a union and do not have bumping rights, according to the notice.

MFA did not issue termination notices to employees who have contractual rights to employment with the MFA beyond October 2026 or to MFA employees who are expected to be needed to assist with the wind-down process.

Universal Health Services announced in its annual report, released Feb. 25, that it recently agreed to a framework of an agreement with George Washington University and MFA, which it described as “the faculty medical group,” to create a nonprofit subsidiary that would employ “a large number, but not all, of their physicians and allied health professionals” and assume financial and management responsibility for MFA.

The transaction is expected to close this summer. The agreement runs for five years and is renewable.

MFA has more than $400 million in debt to George Washington University and other lenders, according to news reports.

George Washington University’s commitment to the transition is $230 million over five years, according to a May post written by university President Ellen M. Granberg on the university website.

“If Capital Medical Group generates losses, those losses will not be borne by GW,” she wrote.