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Where does UPMC plan to invest in the midstate?

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Its deal to merge with PinnacleHealth has yet to receive regulatory approval, but the University of Pittsburgh Medical Center already has plans to invest in capital projects at PinnacleHealth's midstate properties.

Harrisburg-based Pinnacle confirmed last week that it has signed a "binding integration and affiliation agreement" with UPMC, expected to be final early this fall.

UPMC, meanwhile, has applied to the Pennsylvania Economic Development Financing Authority to borrow $750 million in new funding, roughly $400 million of which will fund new construction and renovations at properties across the state.

A public hearing on the bond issue is set for 10 a.m. Thursday.

UPMC's application document reveals that UPMC's capital plans affect dozens of sites across the state. While most are in and around its Pittsburgh base, others are at sites owned by PinnacleHealth, including four hospitals Pinnacle recently purchased from Community Health Systems Inc.

In addition to funding construction, UPMC's borrowing would cover $235 million Pinnacle obtained to purchase those hospitals.

The nature and costs of work at the individual sites were not revealed, and a UPMC spokeswoman said the agency "really cannot say anything more at this time." Pinnacle similarly said the agency will not comment until the deal is complete.

The local sites listed for capital projects in the borrowing documents are:

• Lebanon Valley Advanced Care Center.

• PinnacleHealth Community General Osteopathic Hospital.

• PinnacleHealth Harrisburg Hospital.

• PinnacleHealth West Shore Hospital.

• Hanover Hospital (While not owned by UPMC or PinnacleHealth, Hanover is in the process of completing an affiliation agreement with Pinnacle).

• PinnacleHealth Carlisle Regional Medical Center.

• PinnacleHealth Heart of Lancaster Medical Center.

• PinnacleHealth Lancaster Regional Medical Center.

• PinnacleHealth Memorial Hospital, York.

• Various sites in York, Lancaster, Lititz and Carlisle, labeled "CHS property," that appear to be associated with the four purchased hospitals, including the site of a planned replacement campus for Memorial in York County.

Editor's Note: An earlier version of this story reported that that UPMC loaned PinnacleHealth $235 million for the purchase of four hospitals. Officials with both entities on Wednesday said that UPMC did not loan Pinnacle the money. A spokeswoman for PinnacleHealth said "the lender was Wells Fargo, whom we have had a longstanding banking relationship with."

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Roger DuPuis

Roger DuPuis

Roger DuPuis covers Cumberland County, health care, transportation, distribution, energy and environment. Have a tip or question for him? Email him at rdupuis@cpbj.com. Follow him on Twitter, @rogerdupuis2.

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