Good Samaritan Health System apparently won't have to look hard to find a strong potential partner.
York-based WellSpan Health on Wednesday expressed interest in exploring a deal with Good Samaritan.
"WellSpan has a history of collaboration with Good Samaritan and we would thoughtfully consider a strategic relationship," spokesman Barry Sparks said.
Lebanon-based Good Samaritan had revealed earlier Wednesday it will seek a "strategic alliance" involving another health system. It said forces including the Affordable Care Act and a rapidly changing health care landscape that favors bigger systems have forced the realization the 124-year-old non-profit can no longer stand alone.
Robert Longo, the CEO, said the possibilities range from affiliation to merger to sale of Good Samaritan, although he said sale is an unlikely outcome.
Asked what sort of arrangement would interest WellSpan, Sparks said, "You don't know until you start talking."
Penn State Milton S. Hershey Medical Center spokesman Scott Gilbert said, "It’s impossible to say whether a relationship between our health system and any specific hospital may develop. But as the region’s only academic health center, we are always looking for opportunities to collaborate with other health care organizations to expand access to specialty care and make it easier for more patients to receive this care as close to home as possible."
WellSpan has $1.2 billion in annual revenues, similar to that of Penn State-Hershey. WellSpan operates York and Gettysburg hospitals and recently agreed to merge with Ephrata Community Hospital in northern Lancaster County in a deal that's awaiting government approval.
Good Samaritan said it will immediately begin contacting other health systems and asking those who are interested to submit proposals for its board to evaluate. CEO Robert Longo said trustees hope to complete the selection process by late this year, although completing a deal would likely take longer.
In a news release, Dr. John P. Welch, the chairman of Good Samaritan's board of trustees, said “Potential partners will be invited to offer ideas about different alliance options … While we are not requiring any particular business model, potential partners must propose options that fit our needs and those of our community.”
In Lebanon County, the hospital is fondly referred to the as "Good Sam." On Wednesday, several community leaders said they weren't shocked to learn the hospital has decided it can no longer stand alone.
"When you look around, all the community hospitals have been bought up or joined with some kind of partner," Lebanon County Commissioner William Ames said. "Overall, the trend is that way, not just in health care, but particularly in health care. A lot of the local doctors have joined groups, or been brought out by groups."
Mark Hoffman, executive director of the United Way of Lebanon County, said "Historically, Good Samaritan Health System has been a real asset to the community in many ways. I would be hopeful that whatever outcomes it arrives at would enable that relationship with the community to continue."
Larry Bowman, president of the Lebanon Valley Chamber of Commerce, credited hospital leaders for being proactive rather than waiting for a crisis.
"From what I understand, Good Sam is healthy and is still serving the community well … I think the planning for this is in good hands and they are taking a very smart and prudent approach."
Some of the leaders said there will be worry over whether the hospital will lose its close connection the community, and its role as a good employer and supporter of community causes.
Lebanon Mayor Sherry Capello said she hopes trustees will "preserve the Good Samaritan hospital and health system as we know it … I trust their judgements."
