The state has approved Geisinger Health System's acquisition of Community Medical Center in Scranton, clearing the way for what its leaders say will produce a major upgrade in CMC's medical care.
The state attorney general's office approved the acquisition Friday, and state Department of Health officials gave their final OK Monday. The Federal Trade Commission gave its go-ahead in November. Only Geisinger's and CMC's boards must still sign off - CMC's on Thursday, Geisinger's on Monday - but both approvals are expected to be a formality. By Feb. 1, the two will be cleared to work as one, according to a joint statement issued Monday.
"This merger is good news for patients and the greater Lackawanna community," CMC President and Chief Executive Officer Robert P. Steigmeyer said in a statement. "It was important for CMC to partner with a growing health system with proven success that mirrors our own not-for-profit mission, values and standards of care, and we have certainly found that with Geisinger."
In the same statement, Geisinger President and Chief Executive Officer Glenn D. Steele, Jr., M.D., PhD., said the approvals will allow the system to "build programs, grow services, improve health outcomes and demonstrate value for the people of Scranton and the surrounding area."
As part of the deal, Geisinger has pledged to spend $158.6 million to improve CMC's medical services, upgrade its facilities and install new computer systems, including Geisinger's electronic medical record-keeping system. The first facilities upgrades are expected to include improvements in CMC's operating suites and intensive and critical care units.
Patients will not notice any difference right away, but CMC spokeswoman Wendy Wilson said staff at CMC and Geisinger have worked for months on integrating operations and determining CMC's needs and the approvals allow them to start implementing plans.
She declined to be specific, but Steele said in August that Geisinger would focus on recruiting doctors in neuroscience and other specialties and expanding clinical services such as behavioral health and pediatrics.
No layoffs are expected. The hospital's new name will be Geisinger Community Medical Center.
Though CMC and Geisinger officials have said CMC remains "financially viable" when asked if CMC's finances led to the merger and the hospital was actually in the black for the last two years, CMC struggled for years to avoid deficits. Geisinger, with its greater resources, is expected to further stabilize CMC's finances.
Steigmeyer will remain CMC's leader, and CMC's board will be dissolved.