Memorial Health Systems Corp., based in York County, will be sold to subsidiaries of Nashville, Tenn.-based Community Health Systems Inc., Memorial announced on Tuesday.
The sale of the hospital, surgical center and other facilities is expected to close by year's end, pending regulatory approvals, according to a news release. The terms of the deal are not being released, Memorial spokeswoman Josette Myers said.
The sale agreement with Community Health includes a commitment to build a replacement hospital in West Manchester Township with construction slated to begin before the end of 2014, Memorial said.
Community Health would hire all 1,000 employees of Memorial Health in the same positions and rate of pay for at least one year, according to the release.
A local board of trustees will be appointed with members from Memorial's medical staff, its CEO and community leaders, Community Health said. Memorial's charity care policies and residency training programs also will continue after the proposed sale, the hospital system said. Memorial President and CEO Sally Dixon would retain her post, Myers said.
If the Pennsylvania Attorney General's office and the Orphan's Court of York County approve the sale, the hospital will become a tax-paying entity under its new ownership.
Memorial, in Spring Garden Township, has been looking to join a strong health network for the past three years and has been working to recruit physicians and expand services as it prepared for an agreement, according to the release. The hospital has added 20 physicians and physicians' assistants, opened three specialty offices and a family practice.
"We looked for a partner that will bring access to capital resources and best practices in health care to help us build on our achievements and to fulfill our vision of delivering quality, patient care in a new state-of-the-art hospital facility," Dixon said in a statement.
Community Health and its affiliates own, operate or lease more than 130 hospitals in 29 states. Shares in Community Health Systems Inc. are traded on the New York Stock Exchange under the ticker symbol CYH.