Geisinger will transfer ownership of Holy Spirit Health System to Penn State Health by June 2020, letter says
CAMP HILL — Penn State Health, the parent company of Hershey Medical Center, and Geisinger announced Tuesday that the two health systems have signed a letter of intent to transfer ownership of Holy Spirit Health System to Penn State Health.
The target date for completion of the transaction is June 30, 2020, dependent upon regulatory timeline and approval, the health systems said.
Specifically, the letter of intent is for the two health organizations to enter into a member substitution agreement for Penn State Health to replace Geisinger as the sole corporate member of Holy Spirit Health System.
“We have considered many options for Geisinger Holy Spirit to move forward, and we believe we have the right organization in Penn State Health,” said Geisinger President and Chief Executive Officer, Jaewon Ryu, M.D. “We already work together on programs such as neurosurgery and cardiothoracic surgery in the Harrisburg region. This is a positive next step for Holy Spirit to continue its legacy of providing quality, compassionate care to this community.”
The transfer includes Holy Spirit Hospital in Camp Hill, its affiliated outpatient practices and urgent care centers, as well as West Shore EMS and the Ortenzio Heart Center.
“This makes sense for both organizations, and more importantly for the people in the Cumberland County and Greater Harrisburg region,” said Steve Massini, Penn State Health chief executive officer. “People in these growing communities will continue to have local choice and access to the health services they need to live their lives the way they want.”
Geisinger has invested more than $120 million at Holy Spirit, recruited nearly 100 new providers, and added or expanded important services including trauma, stroke and diabetes care since Holy Spirit joined Geisinger in October 2014.
“By enabling our patients from Cumberland and Perry counties to be cared for closer to home at Holy Spirit, we can create increased capacity for patients in need of the kind of complex care that is only available in our region at Hershey Medical Center,” Massini said.
He added that Penn State Health intends to honor Holy Spirit’s Catholic tradition and sponsorship by the Sisters of Christian Charity, “just as we have done in Berks County following the addition of St. Joseph Regional Health Network into our organization in 2015.”
Ownership of Holy Spirit Hospital would not affect Penn State Health’s plans to open Hampden Medical Center, its new, 108-bed adult hospital under construction in Hampden Twp., Cumberland County.