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Penn State Health acquires St. Joseph Regional Health Network: 6 things to know

Reading, Pa.-based St. Joseph Regional Health Network, previously an affiliate of Englewood, Colo.-based Catholic Health Initiatives, is now part of Penn State Health, a nonprofit organization based in Hershey.

Here are six things to know about the transfer of ownership.

1. The decision to transfer ownership of St. Joseph is a recognition that the healthcare industry is rapidly changing and moving to a new model — one in which organizations are expected to offer integrated systems of care for specific geographical populations, according to the involved parties.

2. "Today healthcare must be as focused upon keeping people healthy as it is on helping them heal when they are sick or injured," A. Craig Hillemeier, dean of Penn State College of Medicine, CEO of Penn State Health, and the university's senior vice president for health affairs, said in a news release. "We also must provide the highest quality care in the most appropriate setting at the lowest possible cost. Adding St. Joseph to our Penn State Health family enhances our ability to provide increased access to specialty care for the people of the Berks region in a high-quality, low-cost setting. It also will allow us to engage the community in meaningful ways to enhance overall health and well-being."

3. The acquisition builds on an existing five-year relationship and will enable Penn State Health and St. Joseph to "more comprehensively coordinate the care of patients in the Berks region, enhance access to services, manage the cost of care and improve population health," the entities said in a statement. Specifically, they said, the acquisition will provide increased and coordinated access to specialty care services and advanced therapies for patients, including clinical trials. 

4. "This agreement moves us another important step closer to achieving the promise of the healthcare of the future," John R. Morahan, president and CEO of St. Joseph Regional Health Network, said in a news release. "In this new era of healthy communities, we will be well-positioned to address population health, which helps people stay healthy, focuses on management of chronic diseases and avoids costly medical care."

5. Financial details of the acquisition were not disclosed.

6. Penn State Health is expected to retain substantially all St. Joseph employees in their current positions.

 

More articles on healthcare transactions:

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14 hospital transactions and partnerships in June 
Prime Healthcare gets go-ahead to purchase N.J. system from CHI

 

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