Bethlehem, Pa.-based St. Luke’s University Health Network is terminating its joint venture with Danville, Pa.-based Geisinger and will assume full ownership of their jointly owned hospital, a Geisinger spokesperson confirmed with Becker’s.
The health systems partnered in 2019 to create Geisinger St. Luke’s Hospital in Orwigsburg, Pa. Following discussions between the systems, St. Luke’s will purchase Geisinger’s interest in the joint venture. The transition is expected to take effect in 2026, pending regulatory approval, the Republican Herald reported Dec. 10.
“This partnership has been successful for both organizations. But most importantly, it has benefited the community,” a Geisinger spokesperson said in a statement shared with Becker’s. “Despite the success of this partnership, St. Luke’s is exercising their right to purchase Geisinger’s interest in GSL, which terminates the joint venture.”
The ending of the joint venture will not affect staff and physicians at Geisinger facilities, the spokesperson said. Employees previously employed by the joint venture will remain part of St. Luke’s, the Herald reported.
“We are exploring opportunities to enhance our presence and add clinical resources throughout the county,” the Geisinger spokesperson said. “For years, we have been the premier choice for healthcare and insurance coverage in these communities — and we will continue to be for decades to come.”
The construction cost of the 130,000-square-foot hospital was $72 million, according to the Herald. Neither system confirmed the cost of the acquisition.
Becker’s has reached out to St. Luke’s and will update this story if more information becomes available.
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