Back To ArticlesWith hospital closures and corporate takeovers of local hospitals on the rise, Pennsylvanians are rightfully worried about how to get care in their local communities at a cost they can afford.
In the last 20 years, the number of local hospitals that have been purchased by larger hospitals or private companies is growing, and even more concerning, these mergers and acquisitions often lead to the closure of local hospitals or key services down the line.
The Growing Number of Hospital Acquisitions & Closures in PA
Over the last twenty years, there have been 112 hospital mergers & acquisitions in communities across Pennsylvania. During that same period, 27 hospitals have closed completely, and another 19 have shut down key services like emergency care or maternity care. Our analysis shows that 1 in 3 hospital mergers and acquisitions lead to a full or partial hospital closure.
2024 is on track to be one of the busiest years yet for hospital acquisitions and closures with 4 new partial closures, 3 new acquisitions completed, and 8 new acquisitions pending.
Promises Made; Promises Broken
When hospitals announce plans for an acquisition, they offer alluring promises of investments, new jobs, better facilities, better care, and giving back to communities. Too often, those promises are broken after the deals go through and public attention shifts away.
Here are some examples of recent deals that have taken place in PA, the promises hospitals made at the time, and what really happened after the deal went through:
UPMC Acquisition of Lock Haven & Sunbury Hospitals: What They Promised
In 2017, President of UPMC Susquehanna Steven Johnson said, “We are excited to extend our tradition of high-quality, compassionate care to the Lock Haven and Sunbury communities. Bringing these hospitals into our family allows us to reinvest in both facilities to improve access, enhance care and grow existing services.”
UPMC Acquisition of Lock Haven & Sunbury Hospitals: What Really Happened
Just two years later, UPMC Susquehanna Sunbury permanently closed its doors, and in 2023, Lock Haven ended inpatient services.
Tower Health Acquisition of Brandywine & Jennersville Hospitals: What They Promised
In 2017, President & CEO of Tower Health Clint Matthews said, “We are coming together to create an even more dynamic, expansive and nationally recognized health system… Our new name, Tower Health, reflects our collective strength, innovative spirit and bold commitment to taking healthcare to new heights.”
Tower Health Acquisition of Brandywine & Jennersville Hospitals: What Really Happened
Tower Health closed Brandywine Hospital in January 2022, one month after closing Jennersville Hospital. The local communities lost access to emergency and inpatient services as well as the only inpatient behavioral health facility with psychiatric beds in the county.
Fayette Holdings, Inc. Acquisition of Berwick Hospital Center: What They Promised
In 2020, Commonwealth Health Marketing and Communications VP Annmarie Poslock commented on the planned acquisition, “FHI is focused on enhancing and growing quality care and services to meet community needs, and Berwick Hospital Center will continue providing quality local care to patients.”
Fayette Holdings, Inc. Acquisition of Berwick Hospital Center: What Really Happened
Berwick Hospital Center emergency room closed in September 2022, leaving Columbia County without a local hospital for the first time in a century. While the hospital maintains 14 inpatient geriatric psychiatric beds, all other operations at the facility have ceased.
Americore Health LLC Acquisition of Ellwood City Medical Center: What They Promised
In 2017, Americore Health CEO Grant White said, “Americore brings to the table access to significant investment capital, a new business model, and a network of strategic nationwide partnerships that will rationalize costs, optimize the medical staff and real estate, and drive new high margin revenue streams for Ellwood City Hospital.”
Americore Health LLC Acquisition of Ellwood City Medical Center: What Really Happened
The hospital closed in 2019 following violations that resulted in the emergency room and inpatient services shutting down in November, followed by significant staff layoffs. The hospital’s closure meant the loss of the biggest local employer (450 jobs), and a 30+ minute drive for patients to the next nearest emergency room.