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West Shore Hospital

West Shore Hospital in Hampden Township.

Provided by PinnacleHealth

HARRISBURG – A federal appeals court has stopped the merger of Harrisburg-based PinnacleHealth System and Penn State Hershey Medical Center.

Tuesday, the U.S. Third Circuit Court of Appeals overturned a May 9 federal court ruling that allowed the deal to go through between both health systems.

Both the Federal Trade Commission and state Attorney General’s Office have opposed the merger, saying it would create a monopoly on health care and raise costs to patients.

In a statement, Hershey Medical Center expressed its disappointment with the latest court decision. “We are disappointed by the court’s ruling. Over the next several days the leadership and respective boards of both organizations will carefully review the decision, and together we will determine our next course of action.”

Penn State Hershey’s campus includes Penn State College of Medicine, Penn State Hershey Cancer Institute, and Penn State Hershey Children’s Hospital.

PinnacleHealth includes Community, West Shore, Harrisburg and Polyclinic hospitals, PinnacleHealth Medical Group, PinnacleHealth Cancer Institute, the Pennsylvania Psychiatric Institute and the Helen M. Simpson Rehab Hospital.

The combined health care system would be known as Penn State Health.

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