In a statement released this week, Geisinger Clinic confirmed it is pursuing legal action against St. Luke’s University Health Network, alleging improper actions related to the pending end of their joint venture at the Orwigsburg hospital.
As previously reported, St. Luke’s announced it would exercise its contractual option to purchase Geisinger’s interest in Geisinger St. Luke’s Hospital, ending the six-year partnership that opened the 64-bed acute care facility in 2019. That transition, pending regulatory approval, will place the hospital fully under St. Luke’s ownership. At the time, St. Luke’s said the change would not impact patient care, staffing, or services, and that employees and physicians would remain in place.
However, Geisinger now claims that while the joint venture is still in effect, St. Luke’s engaged in what it describes as a coordinated effort to recruit Geisinger clinicians, using access and information obtained through the partnership.
According to Geisinger, these actions were intended to limit Geisinger’s ability to continue caring for patients in Schuylkill County once the joint venture formally ends. The health system alleges this conduct violates legal and contractual obligations between the two organizations.
“Geisinger has been caring for patients in Schuylkill County for more than 20 years and remains focused on serving the community and supporting local healthcare options,” the health system said in its statement.
Megan Brosious, Geisinger executive vice president and chief operating officer, emphasized the importance of maintaining access to outpatient care in the county.
“The vast majority of the care delivered over the course of a person’s life is delivered in outpatient settings, and Geisinger clinics and physician practices will continue to play a critical role in the county,” Brosious said. “We will continue to invest in staff, clinicians and resources to grow our outpatient presence in Schuylkill County.”
St. Luke’s, in its earlier announcement, said it was grateful for the collaboration and noted that the partnership marked the first time in recent Pennsylvania history that two health systems co-owned and co-built a new hospital. St. Luke’s President and CEO Rick Anderson previously thanked employees and providers for their work in establishing the Orwigsburg facility.
Regulatory approval is still required for the ownership transition to be finalized. Additional information on both the hospital transition and the legal proceedings is expected in the coming months.
This is a developing story. Skook News will provide updates as more details become available.