UPDATE Evangelical Community Hospital to join WellSpan Health

Feb. 26—LEWISBURG — Evangelical Community Hospital will enter into a partnership with WellSpan Health, according to officials from the health care agencies.

The decision follows operating losses of $2.5 million in 2022 and $29 million in 2023 for Evangelical and a 15-month process.

Pending an anticipated four-month review and regulatory approval, WellSpan Health will assume ownership of the independent hospital at 1 Hospital Dr, Lewisburg, and invest more than $100 million into the facility over the next three years. The medical facility will become Wellspan Evangelical Community Hospital in the health care provider's northern region.

"This decision, while hard, is the right decision," said Evangelical Community Hospital President/CEO Kendra Aucker, who will remain in her position but will serve on WellSpan's senior leadership team as a senior vice president of the northern region. "Joining WellSpan represents the best path forward to continue meeting the health and wellness needs of the community well into the future. Together we will preserve a vibrant local health care system by partnering with an organization that has demonstrated a commitment to the communities it serves and keeping health care local. WellSpan shares our mission, it aligns with our culture and has an excellent reputation for patient-centered care."

WellSpan has six hospitals and two specialty hospitals across 12 counties in south-central Pennsylvania and parts of northern Maryland. In 1990, York and Gettysburg Hospitals came together to form WellSpan Health. Since then, six other hospitals have joined that system.

The affiliation joins Evangelical with WellSpan's integrated health care delivery system, which includes more than 21,000 team members, 2,000 employed providers, 220 locations, and eight hospitals, including the region's largest behavioral health network and a Level 1 Trauma Center. WellSpan currently serves residents in Adams, Cumberland, Lancaster, Lebanon, Franklin, and York counties in Pennsylvania and Frederick and Washington counties in Maryland.

Combined, the organizations will serve more than 1.3 million patients across 12 counties.

Evangelical Community Hospital was established nearly a century ago as an infirmary in a local home for the aged and orphaned. Evangelical, which serves residents in Union, Snyder, Northumberland and Lycoming counties, is the only Centers for Medicare and Medicaid Services Five-Star rated hospital in the region. It employs 1,900 individuals and has more than 170 employed and non-employed physicians on staff at its hospital licensed to care for patients in its 131 licensed beds, according to hospital officials.

Aucker said Evangelical Community Hospital has faced many challenges as an independent hospital with an aging population, rising costs, shrinking reimbursements from Medicare and Medicaid and commercial insurers, and increasing labor costs. Continuing operations in that model is "no longer sustainable," she said.

15-month process

The partnership process started 15 months ago. Evangelical's board and executive team hired a consultant, agreed to seek out a partner and sent out requests for proposals to a variety of organizations before deciding who would be the best fit to serve the region, said Aucker.

"The board, after going through that process, agreed that WellSpant was the most optimal partner for us," Aucker said.

The partnership allows the hospital to remain on the electronic health record system, Epic, experience more consistent support, greater access to technology, potential to expand clinical offerings, access to care delivery innovation and access to education resources to build a pipeline of health care workers. The $100 million investment will allow Evangelical to explore more technologies, new equipment, additions and renovations and expand clinic services.

"Right now, nothing changes as we have at least a four-month regulatory review process to navigate," said Aucker. "However, things will change over time. This type of decision is made because things do need to change in order to deliver on our promise to the community."

Clinical services will continue uninterrupted and growth will be a focus. Patients will be able to access the provider services and facilities they have come to trust for their health care, said Aucker.

Aucker could not speak on how the staffing will change once the acquisition is complete. It's also too soon to pinpoint what WellSpan's investment will bring to Evangelical.

The losses over the last few years have kept Evangelical from making normal investments in people, technology and facilities. Some of WellSpan's dollars will support routine capital to get the hospital up to speed, but the two entities are still considered competitors and they cannot specifically discuss these topics yet, said Aucker.

"I think the rest is more strategic, looking at where there are gaps and where we feel we need help," said Aucker.

'Fantastic combination'

Roxanna Gapstur, president/CEO of WellSpan Health, said the vision is to be a trusted partner to the community.

"When we embarked on our journey to reimagine health care at WellSpan, we committed to innovation while keeping health care local. We're excited to build on that commitment with Evangelical," said Gapstur. "As the only locally-governed health system in Central Pennsylvania, our mission is focused on improving the health of our friends and neighbors. When health outcomes improve through innovative care models, strategic partnerships, and a strong sense of purpose, it creates a fantastic combination."

Tim Moyer, the chair of the Evangelical board of directors, said the decision was a difficult one, but the right choice. He said he is confident in the partnership and everyone is committed to making it a success.

"Over the last year, the board and executive leadership team worked extremely hard exploring a variety of different creative solutions," he said. "During that time, we got to know WellSpan Health and the people shaping its path. I was immediately struck with what a solid match these two organizations are. WellSpan shares our vision and our values. It places a premium on their people, their patients and the communities they serve."

Moyer said a separate philanthropic foundation will be created as a community pathway for hospital support, similar to WellSpan's other hospital foundations.

"Contributions will stay with Evangelical, including endowments and restricted donations as directed by donors," said Moyer.

'Proactive' decision

WellSpan and Evangelical Community Hospital's partnership evokes memories of the former Sunbury Community Hospital. The hospital in Northumberland County was purchased by nonprofit UPMC Susquehanna from for-profit Quorum Health on Oct. 6, 2017. UPMC closed the hospital in early 2020, leaving Sunbury without a hospital for the first time in 125 years.

Aucker said the comparison is not apples to apples. The Sunbury Community Hospital went through a variety of iterations before it landed with UPMC, but the economic health of a community influences the economic health of health care.

"We happen to be in a pretty solid region," said Aucker. "I think Sunbury waited until it was more of a tipping point. Evangelical is in a strong financial position. We made this decision proactively so we didn't hit the tipping point they hit. We have been able to attract top-notch staff, we have an excellent medical staff, and we've been able to, even in these challenging times, recruit and retain staff. That was something they were challenged by."

She added, "We are trying to be proactive to make sure we don't get destabilized. We're still a strong entity, we are in a strong region. People like the patient experience here, they like the care they get here, and that's going to continue."