WellSpan Health is looking to expand its footprint in central Pennsylvania.
The Pennsylvania-based system announced Monday that it plans to acquire the 131-bed Evangelical Community Hospital and its affiliated clinics and outpatient clinics. The hospital is based in Lewisburg, a community about 90 miles north of Harrisburg.
Welspun said it hopes to complete the transaction by July 1, 2024, subject to regulatory approval. Once the transaction is complete, the hospital will be known as WellSpan Evangelical Community Hospital.
Terms of the deal were not disclosed.
More hospital mergers have occurred in recent months, and analysts expect more to occur in the near future, especially as some hospitals face significant financial strain. ing. Kendra Auker, president and CEO of Evangelical Community Hospital, noted the difficult circumstances in a statement regarding the transaction.
“We recognize WellSpan's shared vision for community-based care and our decision to select a partner that will ensure our patients continue to receive the quality care they expect from Evangelical Community Hospital. We did this carefully,” Oker said. In her statement. “While the industry faces strong financial and workforce headwinds, this combination provides the best path forward and allows us to continue serving the health and wellness needs of our community.”
If approved by regulators, Evangelical would join Welspun, which operates eight hospitals and many clinics and outpatient facilities in 12 counties in central Pennsylvania and northern Maryland.
Roxanna Gapstur, president and CEO of WellSpan Health, said the move aligns with WellSpan's goal of “innovating while keeping healthcare local.”
“As Central Pennsylvania's only municipal health system, our mission is focused on improving the health of our friends and neighbors through innovative care models, strategic partnerships, and a strong sense of purpose. Improving health outcomes is a winning combination,” Gapster said in a statement.
“We greatly value what Evangelical Community Hospital means to the surrounding community, and our shared values of integrity and respect for all make this hospital a great fit. I know that,” she added.
Welspun said it would create a separate charitable foundation to generate support for Evangelicals, similar to what the system has done for other hospitals.
Evangelical Community Hospital received a five-star rating from the Centers for Medicare and Medicaid Services last year. “This five-star rating means that, regardless of the size of the hospital, the heart of care is the compassionate delivery of medical expertise,” Ocher said in a statement after the hospital received the rating. This confirms this once again.”
Pennsylvania has seen several hospital deals in recent months.
In December, Jefferson Health announced plans to acquire Northeastern Pennsylvania-based Lehigh Valley Health Network. If the merger is approved, there will be a system of 30 hospitals. Penn Medicine announced in January that it plans to acquire Doylestown Health as Penn continues to expand beyond Philadelphia and into surrounding suburbs.