Lancaster General Health officially signed an agreement with the University of Pennsylvania Health System last Tuesday to join the Penn Medicine network.
The latest acquisition for Penn Medicine includes a health system with three hospitals, worth nearly $1 billion. It adds to Penn Medicine’s already expansive 6.7 million combined square feet of hospitals and outpatient centers that bring more than $7 billion of economic impact to the region.
Penn and LG Health first formed a strategic alliance in February 2014. In March, Penn’s Board of Trustees tentatively approved the acquisition and gave University administrators the authority to complete the deal.
“Since forming our strategic alliance more than a year ago, we’ve learned our cultures are similar and that we share a passion for excellence, aimed at improving health and providing more value at less cost,” Ralph W. Muller, CEO of the University of Pennsylvania Health System, said in a press release last week. “Tremendous synergies and opportunities are possible by combining two of Pennsylvania’s financially strongest and clinically advanced systems.”
Penn is not alone in medical center expansion. In March, Penn State’s Board of Trustees voted to merge their Milton S. Hershey Medical Center with regional non-profit PinnacleHealth System under a new entity known as Penn State Health. Hundreds of other health systems and hospitals have merged in the past several years, creating even larger systems that employ thousands.
“We extensively evaluated partners that could strengthen our not-for-profit mission of advancing the health of our community in this era of unprecedented healthcare reform,” Thomas E. Beeman, President and CEO of LG Health said in the same press release. “Our choice, the University of Pennsylvania Health System, is an elite organization with the resources and expertise to truly transform healthcare.”
The Daily Pennsylvanian has complied a brief timeline of the growth of Penn Medicine, as well as some facts and figures about the deal.
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