Shamokin Area Community Hospital, Coal Township, Pa., has agreed to become part of Geisinger Health System, Danville, Pa., according to a news release. The boards of Shamokin and Geisinger approved the deal in separate votes. Terms were not disclosed, and the deal is pending due diligence and regulatory approvals, according to the release.
Healthcare reform and other economic challenges jeopardized the long-term existence of the 55-bed Shamokin hospital and led to the deal with Geisinger, Shamokin President and CEO Thomas Harlow said in the release. The deal will ensure access to healthcare on the Shamokin campus and promote high-quality, cost-effective care, Harlow said. Geisinger plans to expand the acute-care services at the Shamokin hospital, but the deal does not include a guarantee that it will remain open as an acute-care hospital, a Geisinger spokeswoman said.
Approvals from the Pennsylvania attorney general’s office and department of health are required to complete the deal.