PITTSBURGH — The University of Pittsburgh Medical Center, Pennsylvania’s largest health system, says it has reached a deal to acquire PinnacleHealth System of Harrisburg, which recently purchased Carlisle Regional Medical Center.
The deal is expected to be completed Sept. 1 if it meets regulatory approval.
The Philadelphia Inquirer reports the two health systems have been working on the deal since March.
If approved, UPMC will move into direct competition with the University of Pennsylvania Health System. Penn is the biggest health system in southeastern Pennsylvania.
PinnacleHealth landed with UPMC on the rebound after its merger with Penn State Hershey Medical Center was blocked over concern it would allow prices to rise in the Harrisburg region.
On July 2, PinnacleHealth completed the acquisition of four Pennsylvania hospitals, including Carlisle Regional Medical Center, and their associated assets from Community Health Systems after receiving regulatory approvals.
Pinnacle bought the four hospitals for $231 million in cash, according to Community Health’s quarterly report to the Securities and Exchange Commission, as reported by the Pittsburgh Post-Gazette Sunday. The other three hospitals in the purchase are Heart of Lancaster Regional Medical Center, Lititz; Lancaster Regional Medical Center, Lancaster; and Memorial Hospital of York, York.
“We mark the beginning of an exciting new chapter for our communities and PinnacleHealth,” Philip Guarneschelli, president and CEO of PinnacleHealth, said in a news release on July 2. “We are now one system with a shared goal of better health for all. Our cultural alignment and shared focus on making communities healthier will allow us to transform health care delivery in this region. We are pleased to welcome our new employees, physicians and partners and look forward to working together to continue investing in the communities we serve.”
PinnacleHealth and Capital Blue Cross announced July 3 that they will keep the four hospitals in the Blue Cross provider network following the ownership transition.