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PinnacleHealth to affiliate with UPMC, acquire 4 hospital systems in Pennsylvania

UPMC affiliation brings benefit of low-cost health insurance plan and ability to recruit top doctors, organizations say.

Susan Morse, Managing Editor

PinnacleHealth has announced it is affiliating with UPMC, the University of Pittsburgh Medical Center, and in a separate deal is acquiring four Pennsylvania hospitals including Memorial Hospital of York in York, Lancaster Regional Medical Center in Lancaster, Heart of Lancaster Regional Medical Center in Lititz and Carlisle Regional Medical Center in Carlisle.

PinnacleHealth CEO and President Philip Guarneschelli said the affiliation with UPMC offers an alignment of low-cost health insurance through the Pittsburgh system's provider-sponsored health plan.

The UPMC affiliation would also allow Pinnacle to recruit more top doctors, the health system said in Tuesday's announcement.

[Also: Insurance division buoys UPMC revenue gains]

Pinnacle released no further details on the hospital acquisitions that will go through the state and federal regulations process.

The transaction with Memorial is expected to close this summer.

Memorial Hospital said on its website that the acquisition agreement includes the sale of the hospital and its associated assets and includes a commitment from PinnacleHealth to offer employment to all active employees in good standing when the transaction is complete. Privileges will continue for all physicians in good standing on the medical staff.

[Also: Reading Health System, UPMC Health Plan form joint venture]

There is also a continued commitment with Memorial to construct a new, replacement hospital at the site of the former Hawk Lake Golf Course in West Manchester Township.

PinnacleHealth has operated in central Pennsylvania for more than 140 years. It has three acute-care hospitals serving a five-county region and has net operating revenue exceeding $1 billion.

PinnacleHealth has been exploring collaborative relationships with compatible organizations, it said.

UPMC is among the nation's largest integrated health systems. As both a provider and insurer, UPMC integrates more than 25 hospitals, 600 doctors' offices and outpatient sites, and a more than three-million-member Insurance Services Division.

Twitter: @SusanJMorse