Penn State Health plans to become the owner of Geisinger Holy Spirit in Cumberland County, the two said on Tuesday morning.
It would mark a joining of two well-regarded central Pennsylvania health care systems whose fortunes have headed in opposite directions in a rapidly changing market and industry:
Penn State Health, the parent of entities including Penn State Milton S. Hershey Medical Center, has been in major growth mode, with its volume steadily rising.
Holy Spirit, which became part of Danville-based Geisinger in 2014, has seen its patient volume and finances plummet in recent years. For months there have been rumors Geisinger might put Holy Spirit up for sale.
“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 Dr. Jaewon Ryu, Geisinger’s president and chief executive officer. “We already work together on programs such as neurosurgery and cardiothoracic 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 transaction would involve Holy Spirit Hospital, its affiliated outpatient practices and urgent care centers, as well as the Ortenzio Heart Center and West Shore EMS. It still needs approval from state and federal agencies, which typically consider whether such mergers would limit competition in a way that hurts consumers.
The start of Holy Spirit’s bleeding coincided with the opening of the nearby UPMC Pinnacle West Shore Hospital in 2014.
Interestingly, it would give Penn State Health two hospitals only a few miles apart. Penn State Health is building a hospital near the intersection of Wertzville Road and Interstate 81 in Hampden Township, with the 108 bed hospital expected to open in 2021.
Holy Spirit has about 310 beds and about 2,100 employees. It opened in 1963 at its campus in East Pennsboro Township just outside Camp Hill. Penn State Health has about 14,500 employees including those who work at Penn State College of Medicine.
Penn State said it intends to honor Holy Spirit’s Catholic tradition and sponsorship by the Sisters of Christian Charity.
Check back for more on this developing story.
Note: this article has been revised to give the latest employee counts for Holy Spirit Geisinger and Penn State Health.
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