Penn State Health, PinnacleHealth drop merger plans
Ben Allen, General Assignment Reporter | 10.14.16
(Harrisburg) -- Two major health systems in the midstate are abandoning their proposed merger.
Penn State Health and PinnacleHealth say they'll no longer pursue the merger, after a federal appeals court last month sided with federal regulators who had sued to block it.
In a joint statement, Penn State Health and PinnacleHealth say they're stopping their efforts because an appeal could push legal bills even higher and cost the systems valuable time.
They say they'll continue to work together when collaboration makes sense, but the court's decision blocks full integration.
Meanwhile, the FTC released this statement late Friday: "The parties' decision to abandon this transaction preserves hospital competition in the Harrisburg area," said Debbie Feinstein, Director of the FTC's Bureau of Competition. "Had it been consummated, the merger would have likely led to lower quality and higher cost health care, at the expense of Harrisburg residents and their employers."
Other health systems in the midstate have forged partnerships in recent years: Holy Spirit Hospital is now affiliated with Geisinger Health, and Lancaster General Health is linked to Penn Medicine.
Published in Healthcare Transformation