Lehigh Valley Health Network and Pocono Medical Center to merge
Lehigh Valley Health Network and Pocono Health System have signed a letter of intent to merge, the two organizations announced Thursday.
The merger is subject to due diligence, the negotiation of definitive transaction documents and appropriate regulatory approvals, according to the announcement. The boards of directors of both organizations, in separate meetings, authorized the letter of intent.
Pending completion of due diligence and regulatory approvals, the two organizations expect the proposed merger to take effect in the first half of 2016.
"We believe that the residents of the Poconos region will greatly benefit from the merger of these two longstanding, high-quality healthcare systems," Jeff Snyder, president and CEO of Pocono Health System, said in a statement.
Brian Nester, LVHN's president and CEO, said in a statement the two organizations have a long history together, including the affiliation to provide trauma and radiation oncology services to the region. As one system, Nester said, the group will grow additional, affordable healthcare services for the region.
"We look forward to developing with PMC a hospital of the future that incorporates the highest level of clinical competence to provide the highest quality care close to home." Nester said.
LVHN is the Lehigh Valley's largest employer with a workforce of 13,000 workers. The network includes four hospitals: one in Allentown, one in Salisbury Township, one in Bethlehem and one in Hazleton; 12 health centers caring for communities in five counties; numerous primary- and specialty-care physician practices throughout the region; pharmacies; imaging, home health services and lab services; and preferred-provider services through Valley Preferred.
The network also hosts a medical school program in partnership with the University of South Florida in Tampa.
On Wednesday, LVHN announced a $93.6 million expansion of Lehigh Valley Hospital-Muhlenberg that will feature a birthing center on its west Bethlehem campus. The facility, which officials said could accommodate 2,000 births a year, would offer obstetrics and newborn services for the first time in the campus' 54-year history.
According to its website, Pocono Medical Center has more than 200 physicians and more than 1,850 staff members. According to its fiscal year 2014 annual report, Pocono Health System has one hospital, three immediate care centers and more than 20 service locations.
In fiscal year 2014, Pocono Health System had total revenue of $269.7 million and total operational expenses of almost $263.3 million.
According to a news release, Pocono Medical Center on Oct. 9, 2014, announced plans to construct a second campus hospital facility, called Pocono Medical Center West, on a 40-acre site in Tannersville, Pocono Township.
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