Memorial Hospital is now under new ownership and will move forward with their plan for a new hospital location in West Manchester Township.

A deal finalized on Sunday makes Memorial Health Systems, a nonprofit organization that includes the hospital, York Heart and Vascular Specialists and the Surgical Center of York, official affiliates of Community Health Systems Inc.

The hospital will lose its tax-exempt nonprofit status and become a tax-paying entity, giving substantial new tax revenue into the local community, a news release said.

Nashville-based CHS affiliates are a publicly traded healthcare conglomerate that own, operate or lease more than 130 hospitals in 29 states.

The sale was completed on Sunday and

Memorial Hospital announced it has been sold to a Tennessee firm, but walkers and joggers along the old Hawk Lake Golf Course wonder what will happen to their trails once the new hospital is built. (Bil Bowden)
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Construction of the new hospital, which will keep the same name, will begin within the next 2½ years, the release said.

"The transition took place overnight, and it went very well," said Josette Myers, spokeswoman for the hospital. "We were well prepared for the transition, and everything went according to plan."

Since the changes were administrative in nature there were no disruptions to patient care, Myers said.

Increased resources: The hospital expects the change to bring greater stability and allow for access to the resources of a large hospital company, said Myers.

"What doesn't change is our commitment to caring for local residents," said Myers, explaining that the same physicians and employees will continue to provide care to patients.

All of Memorial's employees will keep their position and salary, the news release said.

The hospital will also maintain its current charity care policies and residency training programs, according to the release.

"CHS is also a good cultural fit for Memorial Hospital," said Sally Dixon, Memorial Hospital president and CEO. "As a Best Place to Work in Pennsylvania for 10 years in a row, Memorial puts great value on the human resources needed to operate a successful hospital. We are excited to be part of an organization that shares our values and is committed to creating great places for employees to work, physicians to practice medicine and patients to receive quality health care."

The process of choosing a potential partner began three years ago for Memorial Hospital, said Myers.

"CHS shares our values and has a proven track record of successfully deploying capital, increasing services, and supporting community hospitals in their efforts to provide patients with high quality care close to where they live and work," Dixon said.

Myers added that transitioning to ownership under CHS will allow for Memorial Hospital to prosper during a time when continuing changes in the healthcare environment have made that difficult for a stand-alone hospital.

The sales price of the final transaction was not disclosed, Myers said.

Memorial Hospital becomes the 17th CHS affiliated hospital in Pennsylvania, according to a news release from CHS.

Wayne Smith, chairman, president and chief executive officer of CHS said, "The acquisition of Memorial Health Systems extends our strong track record of growth and investment in Pennsylvania."

"The hospital's medical staff and employees provide high-quality healthcare services in a competitive environment," Smith said. "We look forward to applying our proven operating strategies, physician recruitment resources, and access to capital to support the care they provide for their patients and to help bring life to a new, modern medical facility that advances clinical quality and the hospital experience."

- Reach Chelsea at 505-5432 or cshank@yorkdispatch.com