FOUNTAIN HILL, Pa. — St. Luke’s University Health Network and Grand View Health are in talks to become partners.
Grand View signed a nonbinding letter of intent to evaluate the potential of it joining the St. Luke's system, officials confirmed Friday.
Letters from the heads of both companies went out to employees Friday informing them of the potential partnership.
“We initiated discussions with other regional health systems to identify, partner with, or join a culturally aligned organization that can help Grand View to continue to grow and provide high quality services to our community,” Grand View Health President Douglas Hughes said in a letter to employees.
"Last week, a non-binding letter of intent was signed to evaluate the potential of Grand View Health joining St Luke's University Health Network."Douglas Hughes, President and CEO, Grand View Health.
“Last week, a non-binding letter of intent (LOI) was signed to evaluate the potential of Grand View Health joining St Luke's University Health Network.
"St Luke's has expressed a commitment to develop a long term relationship, and we share a common goal for meeting the needs of our community.”
An email with a similar message went out to St. Luke’s employees late Friday afternoon from its president, Richard Anderson.
“This potential partnership represents an important and significant step for both organizations and will make both organizations better for the communities we serve,” Anderson said in the email.
'Working together to ensure our cultures'
St. Luke’s corporate communications director Sam Kennedy confirmed that the two health care companies are in talks to partner.
No comment was given beyond the confirmation.
Anderson’s note told employees, “if you have any questions please do not hesitate to talk with your supervisor.
“The next step is to get to know each other better through relationship building and a 'due diligence' process to determine the mutual benefits of Grand View joining the St Luke's network."Grand View Health President Douglas Hughes
"As always we remain committed to keeping you updated throughout this process and appreciate your continued support.”
Hughes addressed the future saying, “the next step is to get to know each other better through relationship building and a 'due diligence' process to determine the mutual benefits of Grand View joining the St Luke's network.
"This includes both organizations working together to ensure our cultures, community support, and clinical services lines align to benefit both organizations.”
Grand View operates a Level II trauma center and acute-care hospital in Sellersville, Bucks County. It also operates five outpatient centers and two urgent care centers in Bucks and Montgomery counties.
Grand View Hospital also is part of the Children’s Hospital of Philadelphia, or CHOP, care network, according to its website.
St. Luke’s is a nonprofit network of more than 20,000 employees providing services at 15 campuses and more than 300 outpatient sites.
A presence in Bucks County
Hughes's letter said that over the past 18 months, Grand View's "trustees’ focus has narrowed to ensuring we are both financially and clinically sustainable over the long term."
“While we have reduced our financial losses, it was determined very early on that a long-term partnership would be necessary to ensure Grand View’s viability in the future," he wrote.
“The timing of a move like this is important. Currently Grand View has momentum, thanks in no small part to our exceptional work.'
The letter says the “due diligence” process will take four to five months.
“If Grand View and St. Luke’s choose to move forward with the partnership after this period, obtaining regulatory approvals will likely take another three to twelve months," it says.
St. Luke's already has a presence in Bucks County. In December 2019, it opened a $100 million Upper Bucks hospital at Route 663 and Portzer Road in Milford Township.
In 2023, it christened a $79 million, three-story addition that essentially doubled the size of the campus.
If Grand View joins St. Luke's, it would be another change in the landscape of Lehigh Valley health care. St. Luke's biggest competitor, Lehigh Valley Health Network, on Aug. 1 completed a deal to be acquired by Philadelphia-based health care system Thomas Jefferson University Hospitals.
Those two health care systems formed a regional partnership overseeing 32 hospitals and more than 700 outpatient care sites. The joint venture employs more than 65,000 people combined.
