PinnacleHealth’s acquisition of 4 hospitals to expand presence in central Pennsylvania


Jones Day is advising PinnacleHealth in its merger with University of Pittsburgh Medical Center (UPMC) and the acquisition of four Central Pennsylvania hospitals from Community Health Systems: Memorial Hospital of York, Lancaster Regional Medical Center, Heart of Lancaster Regional Medical Center and Carlisle Regional Medical Center.

The organization’s announcement unveils a planned affiliation between PinnacleHealth and the University of Pittsburgh Medical Center (UPMC), the state’s largest integrated health system.

UPMC is one of the nation’s largest and most successful 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, the largest medical and behavioral health insurer in western Pennsylvania. Affiliated with the University of Pittsburgh Schools of the Health Sciences, UPMC ranks No. 12 on the prestigious U.S. News & World Report annual Honor Roll of America’s Best Hospitals.

In a separate transaction, PinnacleHealth has also agreed to acquire four Central Pennsylvania hospitals from Community Health Systems: Memorial Hospital of York, Lancaster Regional Medical Center, Heart of Lancaster Regional Medical Center and Carlisle Regional Medical Center.

Both transactions will be subject to regulatory approvals, with the potential for PinnacleHealth’s increased market share to pose an issue, according to an article from PennLive. Based upon remarks from industry insiders, the publication suggests objections from the state’s largest insurer, Highmark, as well as Penn State Hershey Medical Center.

Jones Day is advising PinnacleHealth on the deal with a team led by Kenneth Field.

Involved fees earner: Kenneth Field – Jones Day;

Law Firms: Jones Day;

Clients: PinnacleHealth;

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Author: Ambrogio Visconti