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Penn State Health plans to absorb Lancaster’s largest physician group

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Photo by Ben Allen/WITF

Dr. Craig Hillemeier, CEO of Penn State Health.

(Harrisburg) — There’s a new chapter in the battle between health care giants in the midstate.

Penn State Health says it plans to partner with the largest independent physician practice group in Lancaster County – Physicians Alliance.

As part of the deal, all 120 physicians and other staff would become employees of Penn State Health.

Penn State Health’s CEO Dr. Craig Hillemeier says patients at the offices will still be transferred to local hospitals as needed, but says the new arrangement guarantees a seamless transition to Penn

State Health’s Hershey Medical Center if more complex care is necessary.

The deal follows the collapse of a proposed merger between Penn State Health and PinnacleHealth after a federal appeals court rejected it.

PinnacleHealth has since announced plans to buy four smaller hospitals and affiliate with one of the largest health systems in the country – UPMC.

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