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PinnacleHealth and UPMC Sign Letter of Intent to Pursue Affiliation for Expanding Healthcare Services, Advance Quality Care in Central Pennsylvania

HARRISBURG, Pa., March 14, 2017 PinnacleHealth and UPMC (University of Pittsburgh Medical Center) have signed a letter of intent to pursue an affiliation that would position PinnacleHealth to expand healthcare services, advance quality initiatives and continue to provide nationally recognized care in central Pennsylvania. An affiliation would offer a larger scope of healthcare choices for patients and give the hospital system the ability to recruit more top doctors.
 
PinnacleHealth has been exploring collaborative relationships with compatible organizations that can further its philosophy of delivering the right care per evidence-based standards, in the right place, at the right time and at the right price.
 
It was also announced today that Memorial Hospital of York in York, Lancaster Regional Medical Center in Lancaster, Heart of Lancaster Regional Medical Center in Lititz and Carlisle Regional Medical Center in Carlisle will be acquired by PinnacleHealth in a separate transaction, pending approval.
 
“Having PinnacleHealth affiliate with UPMC is an exciting opportunity for the system and central Pennsylvania,” said Philip W. Guarneschelli, FACHE, president and CEO. “PinnacleHealth has been executing on its vision for the future of healthcare in the region. Affiliation supports geographic expansion and introduces more choices for health insurance through a provider-sponsored health plan.”
 
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.
 
“UPMC has a long history of successful affiliations, most recently UPMC Susquehanna, UPMC Altoona and UPMC Hamot in Erie, where UPMC affiliations have meant significant investment and growth in advanced specialty care, primary care and community services for local residents. This is at the heart of what we do,” said Jeffrey A. Romoff, president and CEO of UPMC. “We are pleased about PinnacleHealth’s shared vision to expand evidence-based, world-class healthcare with value-driven, low-cost insurance products to benefit more residents and businesses throughout Pennsylvania,” Romoff added.
 
“PinnacleHealth is excited to begin this new chapter with UPMC—a world-class academic medical center with significant expertise,” said Guarneschelli. “It’s this type of integration and alignment that will strengthen our complementary clinical education programs and medical research efforts. Together, we can innovate more and advance healthcare, while delivering even better health outcomes at a lower cost.”
 
Both organizations have begun the due diligence process to work toward a definitive agreement to affiliate. While these discussions continue, PinnacleHealth will continue providing the highest quality care to its patients and families, and there will be no changes for them or PinnacleHealth employees and physicians in that time.       
 
“It’s an exceptional chance for growth and positions us extremely well for the future,” said Guarneschelli.  “We continue with enthusiasm and a strong belief that this advances our goals to improve the well-being and health of our community. UPMC supports PinnacleHealth’s vision, long-standing values and traditions—including our commitment to investing in the community.”
 
As the organizations move forward into the process, which is subject to customary regulatory approvals and closing conditions, PinnacleHealth will continue to keep its stakeholders—employees, partnering physicians, local employers, payers and the community— updated as there are developments to share.

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