Thomas Beeman of LG Health and Ralph Muller of Penn Medicine

Thomas Beeman, president and CEO of Lancaster General Health, (left) and Ralph Muller, CEO of the University of Pennsylvania Health System.

LNP asked the leaders of Lancaster General Health and Penn Medicine about key aspects of the proposed deal announced this afternoon.

Here's what LG Health President and CEO Thomas Beeman and University of Pennsylvania Health System CEO Ralph Muller said.

Q: Will LG Health change its name?

A: No, although it will be identified as part of Penn Medicine.

Q: Is this a merger?

A: Both systems characterize it as an “integration” of the two organizations, uniting two of the top five systems in Pennsylvania.

Q: What’s the deal worth?

A: Lancaster and Penn officials said no money is changing hands; Penn is not paying for Lancaster.

Q: Why is this happening?

A: The industry is changing rapidly, in part due to health care reform. LG Health began searching for strategic partners two years ago, seeking to strengthen its ability to provide efficient, affordable and accessible health care.

Q: What’s the impact going to be on Lancaster County?

A: Officials from both systems say procedures and care now offered by Penn in Philadelphia may be available in Lancaster County. Local residents are unlikely to notice any other major differences.

Q: Will LG Health continue to make payments in lieu of taxes to the City of Lancaster and the School District of Lancaster?

A: Yes.

Q: What about LG Health's surplus, which topped $148 million in fiscal year 2014?

A: LG Health CEO Tom Beeman said the funds would be reinvested in Lancaster.

Q: What about new revenues? Will money generated locally be shared with Penn Medicine?

A: LGH officials say all revenue will remain here.

Q: Will LG Health retain local control?

A: The current executive leadership team, including Beeman, is to remain in place; Penn will get two seats on the Lancaster General Health Board of Trustees, and Lancaster General will get two seats on the Penn Medicine board.

Penn will retain certain “reserve powers,” including the ability to appoint a new Lancaster General CEO and chairman of the LGH board of trustees. Penn also will have a say in the issuance of any new debt.

Q: LG Health is the biggest employer in Lancaster County. Will this deal result in job losses?

A: Officials say no; in fact, it could lead to job gains if or as the system expands.

Q: What are the benefits of this partnership?

A: Officials with both systems say they expect it will lower cost and improve access to care.

Q: What happens now?

A: The Federal Trade Commission and Pennsylvania Attorney General must approve the agreement. Penn and LG Health officials say they don’t anticipate any problems, in part because the region is one of the least concentrated health care markets in the country.

Heather Stauffer covers the health care industry. She can be reached at or 717-481-6022.