Penn State Hershey Medical Center and PinnacleHealth to merge

Written by Tim Lambert and Ben Allen | Jun 27, 2014 6:19 AM

(Harrisburg) -- Two major midstate health care organizations are merging.

Penn State Milton S. Hershey Medical Center and PinnacleHealth System will form a new Health Enterprise to provide increased access to a wider range of services, in response to what they call the rapidly evolving marketplace conditions driven by health care reform.

The two organizations have discussed bringing together the medical center and the community health system for about a year.

Michael Young, President and CEO of PinnacleHealth System, will serve as the health enterprise's president.

“Working together, we will continue to improve the health of our communities and find new opportunities to deliver more comprehensive, high quality, cost effective and accessible healthcare services to the greater region,” Young says. “Through our complementary strengths, Penn State Hershey and PinnacleHealth will be well-positioned to meet the growing and diverse healthcare needs of the people of central Pennsylvania.”

Hershey Med's CEO Doctor Harold Paz will serve in the same role with the new group, which he says will be full integrated.

“With a continued focus on cost effective, high-quality care delivery and accessibility, PinnacleHealth System and Penn State Hershey see the formation of a combined health system as the way forward in maintaining a relentless focus on innovation, a commitment to quality patient care, and the discovery of new and better ways to prevent, diagnose and treat disease,” Paz says.

He says it will be governed by a new board with equal representation from both organizations.

Both Paz and Young say no discussions have taken place about the impact on jobs at both health organizations.

Pinnacle and the medical center have worked together in the past, including as partners on a residency program for the past five years.

They will each operate independently until the merger and all necessary approvals are obtained.



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