Penn Highlands Healthcare Market Research Report

Background

Overview

Penn Highlands Healthcare, established on October 1, 2011, is a non-profit, community-based health system headquartered in DuBois, Pennsylvania. The organization operates nine hospitals and over 150 patient care locations across Northwestern, Central, and Southwestern Pennsylvania, serving a 26-county area. With a workforce of approximately 6,200 employees, including 849 physicians and 427 advanced practice providers, Penn Highlands Healthcare is dedicated to delivering exceptional care while maintaining a reverence for life.

Mission and Vision

• Mission Statement: To provide exceptional care through a community-based health system while maintaining a reverence for life.

• Vision Statement: To be the integrated health system of choice through excellent quality, service, and outcomes.

Core Values

• Quality & Safety: Provide a safe environment with high-quality outcomes.

• Teamwork: Foster a culture of teamwork, support, trust, and loyalty.

• Integrity: Practice honesty, confidentiality, respect, and transparency.

• Person-Centered: Recognize those served as equal partners.

• Service: Demonstrate compassion by listening, engaging, anticipating, and exceeding needs and expectations.

• Stewardship: Commit to investing in human and material resources while practicing fiscal responsibility.

• Partnership: Offer services and programs through partnerships with physicians, providers, stakeholders, and other organizations.

• Education: Expand emphasis on education and enhance position as a learning organization.

Key Strategic Focus

Expansion and Modernization

In 2018, Penn Highlands Healthcare initiated a $180 million Master Facilities Plan to enhance access to critical services and advanced care. This plan includes eight major expansion and renovation projects across four hospital campuses and numerous outpatient facilities. Notably, in May 2022, ground was broken for Penn Highlands State College, a $70 million project comprising a state-of-the-art hospital and medical office building.

Service Diversification

The health system offers a comprehensive range of services, including cancer treatment centers (Hahne Cancer Centers), heart and vascular institutes, lung centers, maternal and child centers, and home health agencies. These services are strategically distributed across their facilities to meet the diverse healthcare needs of the communities they serve.

Financials and Economic Impact

Economic Contribution

According to the Hospital and Healthsystem Association of Pennsylvania (HAP), in Fiscal Year 2022, Penn Highlands Healthcare's eight hospitals contributed more than $1.8 billion to the Pennsylvania economy. This includes $836.6 million in spending for goods, services, and employee compensation. The ripple effect added over $991.2 million through business interactions and economic activity resulting from hospital expenditures.

Revenue and Employment

• Annual Net Revenue: Approximately $885 million as of June 2024.

• Employees: Approximately 6,200.

• Physicians: 849 (212 employed).

• Advanced Practice Providers: 427 (237 employed).

Technological Platform and Innovation

Facility Enhancements

Penn Highlands Healthcare has invested significantly in upgrading facilities and introducing advanced therapies and state-of-the-art technology. For instance, Penn Highlands Brookville constructed a three-story medical office building to house primary and specialty care super clinics, and Penn Highlands Clearfield relocated and expanded its Emergency Department.

Recognition and Accreditations

The health system has received numerous awards and accreditations, reflecting its commitment to quality and innovation. Notable recognitions include the 2024 PA Rural Health Program of the Year Award for the Frank Varischetti Trauma Center at Penn Highlands DuBois and the 2024 ANCC Pathway to Excellence designation.

Leadership Team

Chief Executive Officer

• Steven M. Fontaine: As CEO, Fontaine has been instrumental in guiding the health system's strategic growth and commitment to community-based healthcare.

Competitor Profile

Market Insights and Dynamics

Pennsylvania's healthcare landscape is characterized by a mix of large health systems and regional providers. The state's healthcare market is competitive, with providers striving to expand services, enhance quality, and improve patient outcomes.

Key Competitors

• Geisinger Health System: A regional healthcare provider serving central, south-central, and northeastern Pennsylvania. Geisinger operates ten hospitals and a medical school, offering a wide range of services. In 2024, Geisinger was acquired by Risant Health, continuing to operate under its own name.

• WellSpan Health: A health system serving south-central Pennsylvania, offering services including residency programs, mental health services, home health care, and emergency services. WellSpan has expanded through mergers and acquisitions, including the addition of Ephrata Community Hospital and Good Samaritan Health System.

• Conemaugh Health System: The largest healthcare provider in west-central Pennsylvania, operating multiple hospitals and outpatient centers. Conemaugh offers specialized services such as a Level 1 Regional Resource Trauma Center and Level 3 Neonatal Intensive Care Unit.

• Lehigh Valley Health Network: