Officials at St. Luke’s University Health Network, Geisinger Health System and Geisinger Health Plan today announced the signing of a master collaboration Agreement.

The collaboration will take advantage of the collective strengths of St. Luke’s and Geisinger to further improve access to affordable and high quality healthcare to people living in nearly 50 counties in Pennsylvania.

Geisinger sought to team up with St. Luke’s based on its reputation for exceptional quality, strategic vision and willingness to implement new and innovative models of care in collaboration with physicians. When executive leadership from the organizations began discussing ways to work together, they realized they shared similar cultures and a commitment to community health, physician-led change, and a demonstrated results-driven track record in medical research, education and innovation.

“When you get to the heart of it, we are two organizations focused on taking the best care of patients and we’re excited to partner with a healthcare system that aligns with our vision and values,” said David T. Feinberg, M.D., MBA, President and CEO of Geisinger Health System. “Geisinger is thrilled to expand the scope of our relationship with St. Luke’s to advance population health, improve quality and provide better access to care.”

St. Luke’s, a nationally-recognized healthcare system, provides services at six (soon to be seven) hospitals and more than 270 sites, primarily in Lehigh, Northampton, Carbon, Schuylkill, Bucks, Montgomery, Berks and Monroe counties in Pennsylvania and Warren County, New Jersey. It is the only health system in the Lehigh Valley recently recognized by the Centers for Medicaid and Medicare Services with a stellar four-star rating.

Geisinger, viewed as a national model in providing both high-quality and cost-effective medical care, provides services at 12 hospital campuses and 350 sites throughout 45 counties in central, south-central and northeast Pennsylvania and southern New Jersey. Geisinger Health Plan, rated among the top health plans in the nation, has more than 551,000 members in 43 counties throughout central and northeast Pennsylvania.*

“We have earned a reputation as a high quality provider of healthcare services delivered at the lowest cost in the region,” said Richard A. Anderson, President and CEO of St. Luke’s University Health Network. “This collaboration and partnership with Geisinger creates enormous opportunities to enhance preventive health services and improve the health of the growing number of people who depend on St. Luke’s for their care.”

The objectives of the collaboration include:

• Sharing knowledge and experience related to population health and innovation around new value-based payment models.

• The introduction of a Medicare Advantage product to be sponsored by the two health systems for Medicare recipients across the Lehigh Valley. This insurance plan’s objective is to offer improved management of chronic conditions and health outcomes and enhanced access to services not covered under traditional Medicare and Medigap plans.

• St. Luke’s 10,000 plus employees and their dependents will also become members of Geisinger Health Plan on January 1, 2017 and will allow St. Luke’s to save $500,000 annually. Geisinger Health Plan currently provides the management of pharmacy services to St. Luke’s employees.

The relationship will also provide opportunities to benefit commercial and employer groups in the region.