PinnacleHealth pursues affiliation with UPMC, inks deal to acquire 4 CHS hospitals

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PinnacleHealth, a three-hospital system based in Harrisburg, Pa., announced Tuesday it is expanding its network of acute care hospitals and also looking to partner with a bigger system.

PinnacleHealth signed a definitive agreement to acquire four Pennsylvania hospitals from Franklin, Tenn.-based Community Health Systems, which will more than double the number of hospitals in its network. The following hospitals are included in the transaction:

  • 100-bed Memorial Hospital of York (Pa.)
  •  214-bed Lancaster (Pa.) Regional Medical Center
  •  148-bed Heart of Lancaster Regional Medical Center in Lititz, Pa.
  • 165-bed Carlisle (Pa.) Regional Medical Center.

CHS said it expects the transaction, which is subject to customary regulatory approvals, to close this summer. CHS is selling the hospitals as part of a turnaround plan it put into place last year. The company is selling 25 hospitals to trim its debt load.

PinnacleHealth is also looking to expand its reach through a partnership with Pittsburgh-based UPMC. The two systems have signed a letter of intent to pursue an affiliation and have begun the due diligence process.

“Having PinnacleHealth affiliate with UPMC is an exciting opportunity for the system and central Pennsylvania,” said Philip W. Guarneschelli, president and CEO of PinnacleHealth. “Affiliation supports geographic expansion and introduces more choices for health insurance through a provider-sponsored health plan.”

As both a provider organization and an insurer, UPMC includes more than 25 hospitals, a 3 million-member insurance division and 600 physicians’ offices and outpatient sites.


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