Another Pennsylvania hospital merger moves closer

The University of Pennsylvania Health System has taken a key step in its plans to acquire Doylestown Health.

The University of Pennsylvania Health System and Doylestown Health have signed a definitive merger agreement. Assuming regulatory approval, Doylestown would become the seventh hospital in the Penn Medicine system.

Penn Medicine and Doylestown Health have reached a definitive agreement on their planned merger. Penn Medicine first announced its plans to acquire Doylestown Health in January.

The deal still requires the approval of state and federal regulators. Penn Medicine says it’s hoping to integrate Doylestown into the system in early 2025, adding to the list of Pennsylvania hospital mergers and acquisitions in recent months.

With the move, Penn Medicine also continues its expansion beyond its home base of Philadelphia. Doylestown Health is based in Bucks County, one of the suburban counties bordering Philadelphia. Assuming the deal gains final regulatory approval, Doylestown would become the seventh hospital in the Penn Medicine system.

Expanding access

Kevin B. Mahoney, president and CEO of the University of Pennsylvania Health System, said the acquisition of Doylestown will offer more convenience and access to healthcare services.

“The integration of Doylestown Health into UPHS will enable us to expand access to care by providing leading-edge treatments and novel therapies – services that patients might have to travel far from home to receive - within their communities,” Mahoney said in a statement. “Through this strategy, we join the best of Penn Medicine with the best of Doylestown Health to give patients as many convenient pathways as possible to outstanding care and support.”

Jim Brexler, president and CEO of Doylestown Health, said joining Penn Medicine would enable more patient access to the system’s “world-renowned, ground-breaking care.”

“The joining of Doylestown Health into Penn Medicine will allow both organizations to provide the highest quality, cost-effective care, right where patients need it,” Brexler said in a statement.

Officials said they would aim to develop new services in hospital care and outpatient facilities. The organizations also said they would enhance telehealth services and offer more care to patients in their own home.

Penn Medicine and Doylestown have been collaborating for years. Doylestown Health has been part of the Penn Cancer Network for more than a decade.

In recent years, Penn Medicine has also acquired Chester County Hospital, based in the Philadelphia suburbs; Lancaster General Hospital, based in Lancaster, Pa.; and Princeton Health, based in central New Jersey.

Coming together

Penn Medicine’s planned acquisition of Doylestown Health is part of a series of hospital deals in Pennsylvania.

Earlier this month, Jefferson Health, also based in Philadelphia, completed its acquisition of the Lehigh Valley Health Network. The merged organization includes 32 hospital campuses and more than 700 other healthcare locations in the Philadelphia region, eastern Pennsylvania and southern New Jersey.

Community Health Services, Inc. has reached a deal to sell three hospitals in the Scranton area to WoodBridge Healthcare, Inc.

In April, Risant Health, a subsidiary of Kaiser Permanente, completed the acquisition of Geisinger Health.

WellSpan Health, based in central Pennsylvania, completed the acquisition of Evangelical Community Hospital in July.

Industry analysts continue to project an uptick of hospital mergers and acquisitions in the months ahead.

In the midwest, Sanford Health and the Marshfield Clinic Health System said last month that they have signed a non-binding merger agreement. If the deal is finalized, the organizations would create a 56-hospital system with $10 billion in revenue.