UNIVERSITY PARK, Pa. – The Board of Trustees committee on Finance, Business and Capital Planning today (Sept. 18) voted to recommend the creation of Penn State Health, a new not-for-profit entity that provides a legal structure to incorporate various health care facilities and service providers into one new health enterprise. The full board will vote on the motion on Friday.
The new structure would enable the University to bring Penn State Milton S. Hershey Medical Center and its various health care services, including Penn State Hershey Children's Hospital, Cancer Institute and Medical Group, as well as the Penn State Hershey Health System and its associated entities, together with other health care facilities. Such facilities could include hospitals, surgery centers, home health providers and similar organizations.
The measure also paves the way for the potential combination of Harrisburg-based PinnacleHealth with Penn State Health once a definitive agreement between the two entities is reached and regulatory approval is received.
Penn State Hershey and PinnacleHealth signed a letter of intent in June to bring the two health care providers, and their joint venture Pennsylvania Psychiatric Institute, together into one health care entity.
"The creation of Penn State Health is another necessary step to effectively position the University's health enterprise for the future of health care," said A. Craig Hillemeier, Penn State's senior vice president for health affairs, chief executive officer of Penn State Hershey Medical Center and Health System, and dean of the College of Medicine. "By creating Penn State Health, we can bring together health care organizations of various size and clinical specialization to increase access to care, enhance quality, and manage cost over a broader geographic and population base."