University Health System continues its expansion

Marking its first corporate relationship with a community hospital, the University Health System has announced plans to take over Phoenixville Hospital in Phoenixville, Pa. -- about 35 miles from campus. The two parties signed a letter of intent Wednesday, paving the way for a full merger that should be finalized by March, according to Penn Medical Center spokesperson Lori Doyle. Medical School Dean William Kelly said Phoenixville and Penn have had a "mutually-beneficial relationship" in the past. "A formal merger is a logical next step," said Kelly, the Health System's chief executive officer. Doyle noted that the merger is just one part of a long-term project. "This is all part of our plan to develop? an integrative health care delivery system," Doyle said. That plan will eventually enable all patients in the system who are in managed care programs to be treated and hospitalized in their own communities, according to Doyle. She said the system will eventually include "primary doctors spread throughout the region," as well as affiliations with several area hospitals. The Health System already has contractual relationships with seven local hospitals, including Phoenixville. Phoenixville first became affiliated with Penn six years ago when it joined the University of Pennsylvania Cancer Center Network. The two groups then formed the contractual relationship, which allowed them to "collaborate other specific clinical and educational endeavors," according to a Penn Health System statement. Phoenixville Hospital President and CEO Richard Seagrave said the hospital decided to participate in the merger to ensure it would continue to serve its community. "It's an accepted fact among experts that a small community hospital won't exist in five years," Seagrave said, explaining that these hospitals will not survive without "access to managed care contracts." He added that a hospital like Phoenixville can gain access to such contracts through larger health care systems like Penn's. "I want to make sure that we are part of one of those systems? [and] from a quality and cultural point of view, the University of Pennsylvania Hospital System best matches what we do here," Seagrave said. He said he hopes to continue "the care we have been providing all along, which will be enhanced with one of the finest research institutions in the world." Doyle added that the merger could potentially allow Penn Medical students to train at Phoenixville, giving them an opportunity to focus on the community health care experience.

Please note All comments are eligible for publication in The Daily Pennsylvanian.