Carlisle Regional Medical Center in Carlisle could well fit the profile of hospitals its parent, CHS, is looking to sell.
Photo by SEAN SIMMERS
National for profit chain with big Pa. presence is in trouble
Tennessee-based Community Health Systems, one of country's largest for-profit hospital chains, has a major presence in Pennsylvania, where it owned 17 hospitals as of the beginning of 2017. Nationally, CHS owns 158 hospitals in 22 states, and not long ago owned more than 200. CHS is struggling, having lost $1.7 billion in 2016. As a result, it has sold off dozens of hospitals and plans to sell more. CHS has already struck deals to sell two hospitals in Pennsylvania -- Easton Hospital in Northampton County and Sharon Regional Health System in Merger County. They were sold to Steward Health Care System, a small for-profit chain based in Boston.
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Four CHS hospitals in Capitol region
Four CHS hospitals are located in the Harrisburg region: Carlisle Regional Medical Center in Cumberland County; Memorial Hospital in York; and Lancaster Regional Medical Center and Heart of Lancaster Regional Medical Center in Lancaster County.
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Possibilities abound
CHS hasn't given many details about which hospitals are up for sale, typically announcing sales only after agreements have been signed. Still, there's reason to think CHS could be open to selling its Harrisburg and Lancaster region hospitals: Much of the company's losses have been attributed to its purchase several years ago of hospitals formerly owed by another for profit chain, Health Management Associates. Those former HMA hospitals include Carlisle Regional, Lancaster Regional and Heart of Lancaster.
Harrisburg-based PinnacleHealth System is among the system that has stressed the importance of increased size and scale.
Photo credit JOE HERMITT
Who might make a big move?
Moreover, CHS seems especially open to selling off hospitals that are in third in fourth place in their given market. That's exactly the status Carlisle Regional, Lancaster Regional and Heart of Lancaster. And within that same region is a fourth CHS hospital that captures only a small share of its market: Memorial Hospital in York. On top that, the hospital landscape across the whole region has been in flux, and it's unlikely the last seismic shift has occurred. That's especially true given the possible fallout of the failed merger attempt between PinnacleHealth System and Penn State Hershey Medical Center, which has left each of them intent on expanding their footprints by others means. In fact, leaders of both PinnacleHeath and Penn State-Hershey have said expanding their size, scale and reach is essential to their future success. So if CHS is inclined to unloading hospitals, it's hard to imagine it wouldn't have some willing buyers within the market.
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Here are the CHS hospitals and their positions in their markets
Here is a rundown of CHS hospitals in Pennsylvania, their respective market shares, and how they rank in their market. The market share numbers are from the Pennsylvania Health Care Cost Containment Council. They are for the fiscal year that ended in 2015 and are the latest figures available.
Photo source: Commonwealth Health Network
Berwick Hospital Center
Berwick Hospital Center, Berwick, Columbia County
101 beds
Market share: 13.4 percent, third in market
Market leader: Geisinger-Danville, 54.6 percent market share
Source: Brandywine Hospital
Brandywine Hospital
Brandywine Hospital, Coatesville, Chester County
168 beds
Market share: 10.6 percent, third place
Market leader: Chester County Hospital, 27.9 percent
Photo credit: SEAN SIMMERS
Carlisle Regional
Carlisle Regional Medical Center, Cumberland County
165 beds
Market share: 13.3 percent, third in market
Market leaders: PinnacleHealth, 34.5 percent, following by Geisinger-Holy Spirit, 24.1 percent, and ahead of Penn State Hershey Medical Center, with 7.4 percent
Photo credit: Chestnut Hill Hospital
Chestnut Hill
Chestnut Hill Hospital, Philadelphia
148 beds
No market share information available
Photo credit: Easton Hospital
Easton Hospital
Easton Hospital, Easton, Northampton County (a sale has been announced)
196 beds
Market share: 14.3 percent, fourth in market
Market leaders: St. Luke's/Bethlehem, 32.1 percent, Lehigh Valley/Muhlenberg, 15 percent
Photo credit: Commonwealth Health
First Hospital Wyoming Valley
First Hospital Wyoming Valley, Kingston, Luzerne County
127 beds
Market share: 5.6 percent, fourth in market
Market leaders: Wilkes-Barre General, 32.3 percent, following by Geisinger Wyoming Valley, 28.3 percent
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Heart of Lancaster
Heart of Lancaster Regional Medical Center, Lititz, Lancaster County
148 beds
Market share: 5.9 percent, fourth in market
Market leaders: Lancaster General, 57.6 percent, Ephrata Community, 10.8 percent, 6.8 percent
Photo credit: Jennersville Regional Hospital
Jennersville Regional
Jennerville Regional Hospital, West Grove, Chester County
63 beds
Market share: 5.7 percent, fifth in market
Market leaders: Chester County Hospital, 27.9 percent, Main Line Paoli, 20.6 percent
Photo credit: Lancaster Regional Medical Center
Lancaster Regional
Lancaster Regional Medical Center, Lancaster
150 beds
Market share: 6.8 percent, third in market
Market leaders: Lancaster General, 57.6 percent, Ephrata Community, 10.8 percent, 6.8 percent
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Memorial Hospital
Memorial Hospital, York
100 beds
Market share: 9.9 percent, second in market
Market leader: York Hospital, 57 percent
Photo credit: Moses Taylor Hospital
Moses Taylor Hospital
Moses Taylor Hospital, Scranton, Lackawanna County
217 beds
Market share: 29.3 percent, first in market
Second in market: Geisinger-Community, 29 percent
Photo credit: Phoenixville Hospital
Phoenixville Hospital
Phoenixville Hospital, Phoenixville, Chester County
151 beds
Market share: 6.4 percent, fourth place
Market leaders: Chester County Hospital, 27.9 percent, Main Line Paoli, 20.6 percent
Pottstown Memorial Medical Center
Pottstown Memorial Medical Center, Pottstown, Montgomery County
232 beds
Market share, 6.1 percent
Market leader: Abington Memorial, 18.6 percent
Photo credit: Commonwealth Health
Regional Hospital of Scranton
Regional Hospital of Scranton, Scranton
198 beds
Market share: 21.4 percent, third place
Market leader: Moses Taylor (also a CHS hospital), 29.3 percent
Sharon Regional Health System
Sharon Regional Health System, Mercer County,
108 beds
Market share: 37.3 percent, first in market
Photo credit: Tyler Memorial Hospital
Tyler Memorial Hospital
Tyler Memorial Hospital, Tunkhannock, Wyoming County
48 beds
Market share: 13.2 percent, second in market
Market leader: Geisinger Wyoming Valley, 25.3 percent
Photo credit: Wilkes-Barre General Hospital
Wilkes-Barre General Hospital
Wilkes-Barre General Hospital, Wilkes-Barre, Luzerne County
418 beds
Market share: 32.3 percent, first in market
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