Penn State Health and Geisinger announced today the signing of a letter of intent to transfer ownership of Holy Spirit Health System to Penn State Health. Target date for completion of the transaction is by June 30, 2020, dependent upon regulatory timeline and approval.
Specifically, the letter of intent is for the two health organizations to enter into a member substitution agreement for Penn State Health to replace Geisinger as the sole corporate member of Holy Spirit Health System.
“We have considered many options for Geisinger Holy Spirit to move forward, and we believe we have the right organization in Penn State Health,” said Geisinger President and Chief Executive Officer, Jaewon Ryu, M.D. “We already work together on joint programs such as neurosurgery and cardio-thoracic surgery in the Harrisburg region. This is a positive next step for Holy Spirit to continue its legacy of providing quality, compassionate care to this community.”
The transfer includes Holy Spirit Hospital in Camp Hill, its affiliated outpatient practices and urgent care centers, as well as the Ortenzio Heart Center and West Shore EMS in the Holy Spirit market.
“This makes sense for both organizations, and more importantly for the people in the Cumberland County and Greater Harrisburg region,” said Steve Massini, Penn State Health chief executive officer. “People in these growing communities will continue to have local choice and access to the health services they need to live their lives the way they want.”
Geisinger has invested more than $120 million at Holy Spirit, recruited nearly 100 new providers, and added or expanded important services including trauma, stroke and diabetes care since Holy Spirit joined Geisinger in October 2014.
“By enabling our patients from Cumberland and Perry counties to be cared for closer to home at Holy Spirit, we can create increased capacity for patients in need of the kind of complex care that is only available in our region at Hershey Medical Center,” Massini said.
He added that Penn State Health intends to honor Holy Spirit’s catholic tradition and sponsorship by the Sisters of Christian Charity, “just as we have done in Berks County following the addition of St. Joseph Regional Health Network into our organization in 2015.”
Ownership of Holy Spirit Hospital will not affect Penn State Health’s plans to open Hampden Medical Center, its new, 108-bed adult hospital under construction in Hampden Twp., Cumberland County.
One of the nation’s most innovative health services organizations, Geisinger serves more than 1.5 million patients in Pennsylvania and New Jersey. The system includes 13 hospital campuses, a nearly 600,000-member health plan, two research centers and the Geisinger Commonwealth School of Medicine. A physician-led organization, with approximately 32,000 employees and more than 1,800 employed physicians, Geisinger leverages an estimated $12.7 billion positive annual impact on the Pennsylvania and New Jersey economies. Repeatedly recognized nationally for integration, quality and service, Geisinger has a long-standing commitment to patient care, medical education, research and community service. For more information, visit geisinger.org or connect with us on Facebook, Instagram, LinkedIn and Twitter.
About Penn State Health
Penn State Health is a multi-hospital health system with 14,500 employees serving patients and communities across 29 counties in central Pennsylvania. The $2.5 billion system includes Penn State Health Milton S. Hershey Medical Center, Penn State Children’s Hospital, and Penn State Cancer Institute based in Hershey, Pa.; Penn State Health St. Joseph Medical Center in Reading, Pa.; and more than 2,000 physicians and direct care providers at more than 100 medical office locations. Additionally, the system jointly operates various health care providers, including Penn State Health Rehabilitation Hospital, Hershey Outpatient Surgery Center, Hershey Endoscopy Center, Horizon Home Healthcare and Pennsylvania Psychiatric Institute.
In December 2017, Penn State Health partnered with Highmark Health to facilitate creation of a value-based, community care network in the region.
Penn State Health shares an integrated strategic plan and operations with Penn State College of Medicine, the University’s medical school.