The Penn State Board of Trustees has approved a proposal for Penn State Health to acquire Berks County-based St. Joseph Regional Health Network from Catholic Health Initiatives (CHI). The decision today (Jan. 16) paves the way for the proposed acquisition to be submitted to the Pennsylvania Attorney General and the Federal Trade Commission for review and approval. The transfer of ownership also will be reviewed by the Catholic Church, a standard practice for CHI-owned healthcare institutions.
As part of a clinical relationship established in 2010, Penn State Hershey currently provides specialty care for a significant number of adult and pediatric patients from the Berks region, offering treatment for a range of conditions such as cancer, stroke, high-risk obstetrics and neurologic disorders. Penn State Hershey opened a pediatric multi-specialty practice on St. Joseph’s Bern Township campus in 2011. In 2013, vascular surgery services were added to this clinical offering.
The acquisition approved today by the Board of Trustees and in December 2014 by the CHI Board of Stewardship Trustees will allow Penn State Hershey and St. Joseph to better
coordinate the care of these patients, enhance access to services, manage the cost of care and improve the overall health of the region. A patient entering the health system, whether through a hospital or doctor’s office, will have access to a full range of sub-specialty care.
“Joining forces with St. Joseph is a logical next step in our five-year relationship,” said Dr. A. Craig Hillemeier, dean of Penn State College of Medicine, chief executive officer of Penn State Hershey Medical Center and Health System, and Penn State’s senior vice president for health affairs. “The better we can expand our reach and help people to stay healthy, manage chronic diseases and avoid costly medical care – collectively known as population health – the better we position our health system for the future.”
“This agreement will effectively position us to meet the future health care needs of the community,” said John R. Morahan, president and CEO, St. Joseph Regional Health Network. “By combining our resources, and building on our five-year clinical relationship, we will offer even more innovation with the goal of making health care better, safer, more accessible and more affordable.”
Kevin E. Lofton, chief executive officer of CHI, noted that the decision to transfer St. Joseph to Penn State Health is a recognition that the health care industry is rapidly changing to a new model in which organizations are expected to offer integrated systems of care for specific geographical populations. “It has been CHI’s privilege to have continued and expanded upon the St. Joseph health ministry started by the Sisters of St. Francis of Philadelphia and continued by CHI. We are confident that St. Joseph and the communities it cares for will be well-served as part of Penn State Health,” Lofton said.
Penn State Health is a nonprofit entity created by the University in September.
Penn State Health was developed to 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.