HARRISBURG, Pa. (January 14, 2014
) -- Penn State Hershey and PinnacleHealth today announced the selection of Cain Brothers & Company
as the strategic advisor to guide their exploration of an expanded relationship between the two organizations.
In November, Penn State Hershey and PinnacleHealth announced they were discussing ways to broaden the collaboration between their health care systems, with the goal of improving access to care and increasing the quality and breadth of health care services available to people throughout central Pennsylvania. Any collaboration would also strengthen the important role their hospitals play within the community and enhance the teaching and research missions of both organizations.
“Cain Brothers offers us considerable experience in health care strategic partnership transactions and the ability to explore many different models for expanded collaboration between our two health care enterprises,” said Harold L. Paz, M.D., M.S., CEO of Penn State Hershey Medical Center and Health System, Penn State’s senior vice president for health affairs and dean, Penn State College of Medicine. “Cain Brothers has worked on a variety of health care partnership structures and with a wide range of health care clients that include academic health centers, community hospitals, regional health systems and specialized care facilities.”
Founded in 1982, Cain Brothers is an investment banking firm that focuses exclusively on the health care industry. The firm's clients include investor-owned and tax-exempt providers, insurers and payers, health care information technology and medical technology companies, and financial sponsors.
“Cain Brothers is honored to have been selected by two preeminent health care organizations and is prepared to assist both organizations in creating a mutually beneficial strategic plan,” said Carsten Beith, managing director at Cain Brothers.
“We look forward to working with Cain Brothers and Penn State Hershey to build on our existing partnerships and find new opportunities to deliver more cost effective, high quality and accessible health care services to the region,” said Michael A. Young, FACHE, president and CEO of PinnacleHealth. “As health care evolves in central Pennsylvania and across the nation, enhanced collaborations between hospitals and health systems can help to build programs and grow services through the coordination of resources and expertise.”
Currently, PinnacleHealth and Penn State Hershey collaborate in a number of ways. Both are joint venture partners in the Pennsylvania Psychiatric Institute and part owners of Horizon Healthcare Services, a home infusion agency. For more than ten years Penn State Hershey and PinnacleHealth have collaborated on education and training programs for medical students, residents and fellows. The two organizations signed an affiliation agreement in 2010 to further expand this academic partnership.
In the coming months, Cain Brothers will work with leaders from both organizations to help them identify complementary strengths and potential barriers to collaboration, as well as potential models for working together.
Penn State Hershey PinnacleHealth
Scott Gilbert Kelly McCall
About PinnacleHealth System
is a not-for-profit healthcare system dedicated to improving the health and quality of life for the people of central Pennsylvania since 1873. A proven leader in medical innovation, PinnacleHealth offers a wide range of services from primary care to the most complex surgeries and Magnet recognition for nursing excellence. With a total of 577 beds, PinnacleHealth Hospitals admit more than 35,000 patients, treat more than 720,000 outpatients, receive more than 110,000 emergency visits and complete more than 35,800 surgical procedures each year.
The healthcare network includes four campuses (Community, West Shore, Harrisburg and Polyclinic) with two acute care hospitals, includes the Pennsylvania Psychiatric Institute
, the Helen M. Simpson Rehab Hospital
and PinnacleHealth Cancer Center
(second West Shore location to open summer 2014). The five-story, 108-bed West Shore Hospital will open in Hampden Township in 2014, bringing emergency, medical/surgical, cardiology, orthopedics and chronic disease management to the West Shore. PinnacleHealth CardioVascular Institute’s
64 cardiac and vascular specialists complete 5,835 cardiovascular surgery procedures annually.
Medical services, including an extensive network of family practice and specialty physicians, imaging, outpatient surgery and Neuroscience Institute are offered at multiple locations throughout the region. The PinnacleHealth Medical Group
includes more than 220 practicing clinicians and spans four counties. All 26 primary care patient-centered medical home locations are certified by the Accreditation Association of Ambulatory Health Care (AAAHC). PinnacleHealth is currently developing an Accountable Care Organization (ACO) to participate in the Medicare Shared Savings Program (MSSP). For a complete list of services, visit our website at www.pinnaclehealth.org
About Penn State Hershey Medical Center and Health System
Founded in 1963 through a gift from The Milton S. Hershey Foundation, Penn State Milton S. Hershey Medical Center
is a leading academic medical center located in Hershey, Pa. The 551-bed Medical Center is a provider of high-level, patient-focused medical care. Annually the Medical Center admits more than 27,000 patients, accepts more than 890,000 outpatient visits, receives nearly 64,000 emergency room patients and performs nearly 28,000 surgical procedures. The Medical Center received its second consecutive Magnet designation for nursing excellence in fall 2012.
The Medical Center campus includes Penn State College of Medicine
(Penn State’s medical school), Penn State Hershey Cancer Institute
, andPenn State Hershey Children’s Hospital
—the region’s only children’s hospital, which was named to the 2013 U.S. News Best Children’s Hospitals list in five specialties. The Medical Center and College of Medicine conduct more than $81 million in funded biomedical research annually and has more than 1,700 students and trainees in medicine, nursing, the health professions and biomedical research on its campus.
The Medical Center campus is part of Penn State Hershey Health System
, which also includes the Pennsylvania Psychiatric Institute, Penn State Hershey Rehabilitation Hospital
, and other specialty facilities. Penn State Hershey Medical Group
, which is comprised of 63 clinics, and more than 900 physicians and advanced practice clinicians, is Penn State Hershey’s outpatient medical practice and includes 14 patient-centered medical homes certified by the National Committee for Quality Assurance (NCQA).