The Penn State Board of Trustees Committee on Finance, Business and Capital Planning today (Jan. 15) approved a plan to bring Penn State Milton S. Hershey Medical Center and PinnacleHealth System together to form a new health enterprise. In doing so, the committee advanced a recommendation to the full University Board of Trustees to approve the plan. It is anticipated that the Board of Trustees will consider a motion to approve the plan at its meeting on March 20.
If approved by the Board of Trustees in March, the plan would still require approval from the state Attorney General and the Federal Trade Commission.
The approval of the plan by the committee is the latest step in formal discussions to expand collaboration between the two health systems, which began in November 2013. In June 2014, Penn State Hershey and PinnacleHealth signed a letter of intent to bring their two systems and their joint venture, Pennsylvania Psychiatric Institute, together into a new health enterprise.
This proposed collaborative and innovative enterprise would bring together a high-performing university medical center and a community health system known for its quality outcomes and patient-focused care. It would provide increased access to a wider range of services and full spectrum of care to patients over a broader geographic base.
The proposed new enterprise could fall under the umbrella of Penn State Health, a not-for-profit entity created by the University in September 2014.
Penn State Health was developed to enable the University to bring Penn State Milton S. Hershey Medical Center and its various health care services, including Penn State Hershey Children’s Hospital, Cancer Institute and Medical Group, as well as the Penn State Hershey Health System and its associated entities, together with other health care facilities. Such facilities could include hospitals, surgery centers, home health providers and similar organizations.
Penn State Hershey and PinnacleHealth System recently announced plans to form a new health enterprise in central Pennsylvania. Michael A. Young, FACHE, president and CEO of PinnacleHealth, offered the following statement regarding the decision by Dr. Harold L. Paz, chief executive officer of Penn State Hershey Medical Center and Health System, Penn State’s senior vice president for health affairs and dean, Penn State College of Medicine, to accept the position of executive vice president and chief medical officer at Aetna.
“I have been fortunate to work with Dr. Paz on many projects,” Young said. “In addition to his extensive knowledge and experience, he has always shown a deep-felt concern for his patients, staff and students. I’m sure he will do an outstanding job at Aetna. While we will miss Dr. Paz’s support, PinnacleHealth System and Penn State Hershey will continue on our path to create a new health enterprise that will be better positioned to improve the health of area residents and find new opportunities to deliver high quality, cost-effective care.”
Paz’s last day at Penn State Hershey will be Monday, July 28. Penn State President Eric Barron has appointed Dr. A. Craig Hillemeier to serve as CEO, senior vice president for health affairs and dean of the College of Medicine upon Paz’s departure.
HARRISBURG, Pa. (June 26, 2014) — Today Penn State Milton S. Hershey Medical Center and PinnacleHealth System have signed a letter of intent and term sheet with the intent to form a new health enterprise in central Pennsylvania. This new collaborative and innovative enterprise will bring together a high-performing university medical center and a community health system known for its quality outcomes and patient-focused care. It will provide increased access to a wider range of services and full spectrum of care to patients over a broader geographic base.
This new health enterprise would be governed by a new board with equal representation from both organizations. Under the proposed structure, Harold L. Paz, M.D., M.S., chief executive officer of Penn State Hershey Medical Center and Health System and Penn State’s senior vice president for health affairs will oversee the health enterprise as the CEO. Michael Young, President and CEO of PinnacleHealth System, will oversee the operations of the enterprise as President.
HARRISBURG, Pa. — Penn State Hershey and PinnacleHealth today announced the selection of Cain Brothers & Company as the strategic advisor to guide their exploration of an expanded relationship between the two organizations.
In November, Penn State Hershey and PinnacleHealth announced they were discussing ways to broaden the collaboration between their health care systems, with the goal of improving access to care and increasing the quality and breadth of health care services available to people throughout central Pennsylvania. Any collaboration would also strengthen the important role their hospitals play within the community and enhance the teaching and research missions of both organizations.
HERSHEY, Pa. —Penn State Hershey and PinnacleHealth have entered into formal discussions to broaden their existing strategic relationship. The goals of the potential relationship are to improve access to care and increase the quality and breadth of health care services available to people throughout central Pennsylvania. Any collaboration would also strengthen the teaching and research missions of both organizations.
The two organizations are in the process of selecting an independent third-party firm to help explore potential opportunities for the two health care organizations to expand their relationship.
Currently PinnacleHealth and Penn State Hershey collaborate in a number of ways. Both are joint venture partners in the Pennsylvania Psychiatric Institute. Founded in 2008, the Institute comprises a 74-bed teaching and research hospital and three outpatient practices that provide specialized mental health services to pediatric, adolescent, adult and geriatric patients.