Officials from the University of Pennsylvania Health System and Doylestown Health signed a definitive agreement on Wednesday to merge, pending regulatory approvals.
The signing of the agreement at Doylestown Hospital follows a letter of intent that was announced in January.
The merger is expected by early 2025 after federal and state regulatory approvals, according to a statement from the health systems.
The planned merger is not characterized as a purchase but rather as a member substitution, according to Angela Linch, Doylestown Health’s director of communications.
“The integration of Doylestown Health into UPHS will enable us to expand access to care by providing leading-edge treatments and novel therapies – services that patients might have to travel far from home to receive – within their communities. Through this strategy, we join the best of Penn Medicine with the best of Doylestown Health to give patients as many convenient pathways as possible to outstanding care and support,” said Kevin B. Mahoney, CEO of Penn Medicine.
Doylestown Health CEO and President Jim Brexler highlighted the merger’s benefits.
“The joining of Doylestown Health into Penn Medicine will allow both organizations to provide the highest quality, cost-effective care, right where patients need it,” he said.
The combined health system will develop new programs and enhance services across hospitals, outpatient facilities, home care, and telemedicine, officials said.
The merger is expected to build on existing collaborations, including the Penn Radiation Oncology at Doylestown, which has treated over 400 patients annually since its inception in 2011.
Doylestown Hospital is set to become the seventh hospital under Penn Medicine, joining others like the Hospital of the University of Pennsylvania in Philadelphia and Lancaster General Health.
The merger comes on the heels of financial challenges for Doylestown Health, which reported operating losses of $24.3 million in 2022 as it grappled with nearly $70 million in pandemic-related financial strains, the Doylestown Intelligencer reported in 2023.
The Doylestown-based health system has shown resilience with profitable moves, including the recent sale of the Pine Run Retirement Community, which generated $35 million in proceeds, according to the Philadelphia Business Journal.
With nearly 3,000 employees, Doylestown Health stands as the third largest employer in Bucks County.
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