The parent companies of Hanover Hospital and PinnacleHealth System are moving toward a strategic partnership, both companies announced Friday.

The nonbinding letter of intent will move negotiations toward a “strategic partnership,” according to a release by Hanover Hospital. The hospital’s board of directors has sought other larger partners amid a new health care system climate that is moving toward consolidation.

“Being a standalone hospital in Pennsylvania is increasingly challenging,” said Michael Gaskins, president and CEO of Hanover Hospital.

“Given the current state of health care, this decision will better position Hanover Hospital for the delivery of the highest level of care in York and Adams counties in the future,” said Dr. Paul Spears, chairman of Hanover Hospital’s board of directors, in a release.

PinnacleHealth announced it would acquire Memorial Hospital and three other regional facilities located in Carlisle, Lancaster and Lititz, earlier this month. On the same day, Pittsburgh health giant UPMC announced it would purchase PinnacleHealth as it eyes a move into the midstate.

“PinnacleHealth is thrilled for the opportunity to work with a unique organization like Hanover Hospital, which offers extensive services and state-of-the-art technology while providing exceptional, personalized care to the Adams and York communities,” said Phillip Guarneschelli, president and CEO of PinnacleHealth, in a statement.

“Our goal is not only to support the great care patients have come to expect but also to develop programs and enhance physician recruitment to offer the community even more services close to home,” Guarneschelli added.

PinnacleHealth sought to merge with the Penn State Milton S. Hershey Medical Center last year, but the plans fell apart after a crippling injunction by a federal appeals court in October. At the time, the Federal Trade Commission and the Pennsylvania Attorney General’s office disapproved of the deal, saying it would lead to higher patient costs and less competition.

The terms of the partnership have not been finalized, but existing employees and leadership have been ensured of their positions for the next year, according to the release.

An agreement is expected to be reached and signed in the coming months, according to the release. The agreement will be subject to regulatory approval.

Read or Share this story: