Penn State Health, CHI complete transfer of St. Joseph Regional Health Network ownership

Penn State Health and Catholic Health Initiatives (CHI) have completed the transfer of ownership of CHI's affiliate, St. Joseph Regional Health Network (St. Joseph) in Reading, Pa., to Penn State Health.

Formal discussions among the organizations began in 2014. The decision to transfer ownership of St. Joseph is a recognition that the health care industry is rapidly changing and moving to a new model - one in which organizations are expected to offer integrated systems of care for specific geographical populations. As a result, many smaller health systems are joining larger systems to expand their care within existing regions.

"Today health care must be as focused upon keeping people healthy as it is on helping them heal when they are sick or injured," said Dr. A. Craig Hillemeier, dean of Penn State College of Medicine, CEO of Penn State Health, and the University's senior vice president for health affairs. "We also must provide the highest quality care in the most appropriate setting at the lowest possible cost. Adding St. Joseph to our Penn State Health family enhances our ability to provide increased access to specialty care for the people of the Berks region in a high-quality, low-cost setting. It also will allow us to engage the community in meaningful ways to enhance overall health and well-being."

This acquisition builds on an existing five-year relationship and will enable Penn State Health and St. Joseph to more comprehensively coordinate the care of patients in the Berks region, enhance access to services, manage the cost of care and improve population health. It will provide increased and coordinated access to specialty care services and advanced therapies for patients, including clinical trials.

"This agreement moves us another important step closer to achieving the promise of the health care of the future," said John R. Morahan, president and CEO of St. Joseph Regional Health Network. "In this new era of healthy communities, we will be well-positioned to address population health, which helps people stay healthy, focuses on management of chronic diseases and avoids costly medical care."

As part of a clinical relationship established in 2010, Penn State Hershey Medical Group currently provides specialty care for a significant number of adult and pediatric patients from the Berks region, offering treatment for a range of conditions such as cancer, high-risk obstetrics issues and neurologic disorders. Penn State Hershey also opened a pediatric multi-specialty practice on St. Joseph's Bern Township campus in 2011. In 2013, vascular surgery services were added to this clinical offering. St. Joseph is also a Penn State telemedicine partner, offering real time diagnosis and interventions for stroke patients through a two-way, audio-visual consultation with Penn State neurologists and neurosurgeons.

"CHI's selection of Penn State Health to acquire St. Joseph was reached through a deliberative and thoughtful process," said Peter Banko, CHI senior vice president and group executive officer. "Penn State Health will enhance and expand on the excellent care that St. Joseph has provided since its founding by the Sisters of St. Francis of Philadelphia and its sponsorship by CHI since 1996."

Penn State Health is expected to retain substantially all St. Joseph employees in their current positions.