Schuylkill Health and Lehigh Valley Health Network publicly announced their future plans at a Thursday press conference in Schuylkill Medical Center-East Norwegian Street.
“Today is a very special day for our community and health care in Schuylkill County. Perhaps you’ve already heard, but allow me to make it official. Schuylkill Health and Lehigh Valley Health Network have signed a definitive agreement to merge, and we are both excited and pleased to be able to share this news with you today,” Marc H. Lory, interim president and CEO of Schuylkill Health, said.
Lory, Brian Nester, president and CEO of Lehigh Valley Health Network, John Stanley, chairman of the board of trustees of Lehigh Valley Health Network, and Anthony Baran, chairman of the board of directors of Schuylkill Health, all spoke during a brief 11:30 a.m. news conference.
“With the signing of the definitive agreement, our journey continues in a new way. We must now go through a regulatory process, which we expect to be completed by the end of 2016,” Lory said.
Employees were told of the news earlier this week.
Lory was appointed by the board of directors of Schuylkill Health in September 2014 and started Oct. 6 after former CEO John E. Simodejka resigned in August 2014. In November 2014, Lory announced Schuylkill Health was looking to form a partnership with another entity.
Nester said LVHN wants to bring more services to the area.
“We intend to invest here, in people, in services, in facilities and in technology. We’re committed to increasing the number of primary and specialist physicians in this region,” he said.
Lehigh Valley Health Network includes five hospital campuses in Lehigh and Luzerne counties; Lehigh Valley Hospital-Cedar Crest, Lehigh-Valley Hospital 17th and Chew Streets, and Lehigh Valley Health Network-Tilghman, all in Allentown, Lehigh Valley Hospital-Muhlenberg, Bethlehem, and Lehigh Valley Hospital-Hazleton, Hazleton.
Baran said there were initially seven potential parties interested in Schuylkill Health. This was reduced to two. Officials never revealed who any of the prospective entities were.
“This affiliation will increase the level of services available locally and lessen the need to go out of the area for care. We are anxiously looking forward to becoming a part of the Lehigh Valley Health Network and really advancing the level of health care delivery to the residents of Schuylkill County,” Baran said.
Lory and Baran thanked the employees of the hospitals and those involved in bringing the merger to where it is today.
Schuylkill Health employs 1,341, of which 592 are at East Norwegian Street, the former Good Samaritan Regional Medical Center, and 749 are at South Jackson Street, the former Pottsville Hospital & Warne Clinic.
At this stage of the process, representatives of neither organization could provide details about jobs, management, departmental organization and other things of interest to hospital employees and the community.
When asked about employment and organization, Lory said, “That’s to be determined and we don’t have all the answers yet. I think, at least for Schuylkill Health, the issue for us was announcing the partnership has occurred.”
“This is the merger of two nonprofit entities, so the term acquisition does not come into play. There are no assets that are being acquired for a price. So it is not an acquisition. It is a true merger of two corporate entities. It will form a single corporate entity when we are done and the assets of the organizations just get shared,” Lory said.
However, Nester said a change might be in order.
“I think the needs will change. Certainly I think what this community needs is a single hospital entity that can address all concerns of the community and provide exemplary high quality service,” he said.