Penn State Hershey Medical Center and PinnacleHealth end efforts to merge

UNIVERSITY PARK, Pa. (WHTM) – A merger between Penn State Hershey Medical Center and PinnacleHealth Systems is officially off the table.

The Penn State Board of Trustees accepted a recommendation to end the agreement on Friday.

Last month, a federal appeals court blocked the merger.

Both the Federal Trade Commission and state attorney general’s office opposed the merger, saying it would create a monopoly on health care in the region and raise costs to patients.

In a statement, Hershey Medical Center said, “We are disappointed by the court’s decision. We firmly believe the integration of our two health systems would serve the best interests of patients and the entire central Pennsylvania community. But given the time and cost associated with continuing litigation, PinnacleHealth and the Milton S. Hershey Medical Center have decided to bring our integration effort to a close.”

Penn State and Pinnacle worked since 2014 to join the two organizations. According to the statement, the two will continue to look for ways to collaborate in the future.

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