PinnacleHealth to acquire Memorial Hospital

Christopher Dornblaser

PinnacleHealth on Tuesday announced plans to buy four area hospitals, including Memorial Hospital in York County.

The Spring Garden Township medical facility is part of a purchase agreement that also includes Lancaster Regional Medical Center in Lancaster, Heart of Lancaster Regional Medical Center in Lititz and Carlisle Regional Medical Center in Carlisle, according to a joint news release from PinnacleHealth and Memorial Hospital.

An exterior rendering of the new Memorial Hospital shown during the groundbreaking ceremony Tuesday, May 10, 2016, at the former Hawk Lake Golf Course in West Manchester Township. Amanda J. Cain photo

New Memorial Hospital still on despite owner's struggles

PinnacleHealth currently operates three hospitals on four campuses serving patients in five central Pennsylvania counties. The deal is expected to be finalized this summer, subject to regulatory approval.

On Wednesday, the University of Pittsburgh Medical Center signed a letter of intent to affiliate with PinnacleHealth.

A planned merger of PinnacleHealth and the Milton S. Hershey Medical Center fell apart in October after a federal appeals court ruling granted a preliminary injunction against the move.

The Federal Trade Commission and the Pennsylvania Attorney General’s Office sought to block that deal, arguing the merger would have reduced competition and led to “reduced quality and higher health-care costs for the area’s employers and residents.”

The purchased agreement announced this week includes a commitment from PinnacleHealth to retain all current employees in good standing once the transition is completed, the release states. Privileges will continue for all physicians in good standing who are on the medical staff, according to the release.

PinnacleHealth also will  follow through with the construction of a new Memorial Hospital at the former Hawk Lake Golf Course site in West Manchester Township.

The Associated Press contributed to this report.

— Reach Christopher Dornblaser at or on Twitter at @YDDornblaser.