PinnacleHealth completes Memorial Hospital acquisition

David Weissman
York Dispatch
Construction continues at the new site for Memorial Hospital Tuesday, Nov. 1, 2016, in West Manchester Township. Amanda J. Cain photo

PinnacleHealth finalized its acquisition of four area hospitals, including Memorial Hospital in Spring Garden Township, on Saturday, according to a news release.

The health care service provider — which also purchased hospitals in Lancaster, Lititz and Carlisle — now owns and operates seven hospitals and 132 outpatient and ancillary facilities.

New Memorial Hospital still on despite owner's struggles

As part of the acquisition agreement, PinnacleHealth has committed to complete construction of a new Memorial Hospital at the former Hawk Lake Golf Course site in West Manchester Township, according to Memorial spokesman Jason McSherry.

McSherry said PinnacleHealth officials expect construction of the building to begin later this year.

Memorial Hospital and the other hospitals acquired will remain in the Capital BlueCross provider network, according to a joint news release from PinnacleHealth and BlueCross.

PinnacleHealth also offered employment to all active employees in good standing.

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.”

PinnacleHealth also has signed a letter of intent to affiliate with the University of Pittsburgh Medical Center, pending regulatory approval.