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Promises Made; Promises Broken: What Really Happens when Local Hospitals are Acquired

January 16, 2025

With 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.

Over the last twenty years (since 2004), there have been 148 hospital mergers & acquisitions in communities across Pennsylvania. During that same period, 32 hospitals have closed completely, and another 25 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 was one of the busiest years yet for hospital acquisitions and closures with 7 hospitals closing major services, and 4 new hospital system buyouts that affected 28 total individual hospitals. In the first week of 2025, one hospital has already closed, with another at high risk of closure.

In Pennsylvania, there are only 13 remaining independent general acute care hospitals. Of those, 2 are currently slated for a buyout.

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.

Commonwealth Health Acquisition of Kingston First Hospital: What They Promised

In 2012, James McGuire, a spokesman at Wilkes-Barre General Hospital reflected on CHS’s new merger over area hospitals stating, “Over the next several years, more than a quarter of a billion dollars will be invested in the facilities, services and medical technology of Commonwealth Health to support the delivery of quality patient care, with some of these investments already complete… The shared expertise among providers will be focused on creating centers of excellence in medical specialities that include cardiology, orthopedics, obstetrics, surgical services and emergency medicine.”

Commonwealth Health Acquisition of Kingston First Hospital: What Really Happened

August 2022, the hospital began to notify the community about its pending closure for October, citing staffing issues. New admissions had stopped in June, leading to more staff turnover. The closure ended access to the only mental health facility in the area.