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Federal Court denies injunction to prevent PinnacleHealth System and Milton S. Hershey Medical Center from joining

The proposed integration of the Milton S. Hershey Medical Center and PinnacleHealth into Penn State Health cleared a significant legal obstacle today. Following a hearing in District Court in Harrisburg in April, Judge John Jones has denied the Federal Trade Commission's (FTC) and PA Attorney General's (AG) request for an injunction to prevent the two health systems from coming together.

The FTC and AG could choose to withdraw their legal challenge or continue to oppose integration through various legal channels, which include appealing the judge's decision.

In the meantime, the two healthcare organizations will continue laying the groundwork for their integration under Penn State Health.

This new collaborative and innovative enterprise will bring together a high-performing university medical center and a community health system known for its quality outcomes and patient-focused care. It will provide increased access to a wider range of services and full spectrum of care to patients over a broader geographic base.

“Judge Jones' decision reinforces our long-stated position that the proposed integration of PinnacleHealth and the Milton S. Hershey Medical Center is to the benefit of patients, families, employers and our broader community,” said Dr. A. Craig Hillemeier, CEO of Penn State Health, dean of Penn State College of Medicine and Penn State's senior vice president for health affairs. “We remain committed to our integration plans with a focus on the people and communities we serve, as well as the many dedicated people who deliver patient care, educate our next generation of care providers, and work to shape the future of medicine.”

“We are grateful to the many employers, community physicians, commercial insurance providers, community leaders and others who have recognized the benefits of our integration and demonstrated their broad support for it,” said Michael A. Young, president and CEO of PinnacleHealth. “We look forward to continuing our work together with these key constituents as we move forward with our plans for integration.”

Under the proposed structure, Hillemeier will serve as the CEO of the new organization. Young will serve as the president and chief operating officer (COO).

The new organization will be governed by a 17-member board of directors made up of directors drawn from Penn State University, Milton S. Hershey Medical Center and PinnacleHealth System boards.

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