St. Luke’s University Health Network will acquire Easton Hospital, including affiliated physician practices and two physician residency programs with 36 physician residents.

The acquisition will preserve the 125-year-old hospital, ensuring jobs and bring St. Luke’s world-class healthcare to the greater Easton-area community.

St. Luke’s and Steward Health Care of Dallas, owner of Easton Hospital since May 2017, recently signed an asset purchase agreement for transfer of ownership to St. Luke’s University Health Network, effective July 1.

“Integrating an existing hospital into a health network can be challenging, even during the best of times, let alone during a global pandemic. However, St. Luke’s has always welcomed challenges,” said Richard A. Anderson, President & CEO of St. Luke’s University Health Network.

“We stepped away from discussions with Steward in early March to appropriately focus on the epidemic and the treatment of COVID-19 patients,” Anderson said, adding, “After careful consideration, we again re-engaged in discussions with Steward in late April.

“After diligent evaluation and thoughtful discussion, our board of trustees felt that the acquisition of Easton Hospital was the right thing to do for the health and well-being of the Easton community in spite of recent media reports and predictions of Easton Hospital’s demise.

The acquisition, which was approved by the St. Luke’s Board of Trustees, is subject to certain conditions, including review and approval by regulatory agencies.

The June 3 announcement is nearly two decades after St. Luke’s and Easton Hospital first explored the possibility of merging.

The two organizations engaged in extended discussions in 2001 before Easton Hospital’s board of trustees sold the hospital to for-profit hospital company Community Health Systems of Franklin, Tenn. Community Health Systems sold Easton Hospital to Steward in 2017.

“Over the years, St. Luke’s management team has established a highly successful record of working collaboratively and forming successful partnerships with other hospitals that have joined our Network,” said Anderson.

“We have extended our nationally-recognized quality programs to all of our locations, providing patients with cost-effective care and superior quality second to none as measured regionally and nationally.

“St. Luke’s will replicate at Easton Hospital the success it has achieved at its other campuses, resulting in a ‘win-win-win’ for all. The community wins. Easton Hospital wins. Our Network wins,” said Anderson.

Linda Grass, President of Easton Hospital, said: “Steward entered into this asset purchase agreement with the long-term interests of Easton Hospital, its patients and the community in mind.

“St. Luke’s long history of enriching the hospitals that join its network make it the ideal partner for Easton Hospital,” said Grass.

“This collaboration will ensure that Easton-area residents will continue to receive the quality, compassionate care that has been the mainstay of Easton Hospital for over 125 years,” Grass said.

“St. Luke’s is preserving the hospital and jobs for the community by right-sizing the hospital,” said St. Luke’s Board of Trustees President, Luanne B. Stauffer, adding, “Easton Hospital is not at the end of the road. Quite the contrary: It is on the path to a bright future with St. Luke’s.”

Community leaders lauded the acquisition of Easton Hospital by St. Luke’s University Health Network.

“I am thrilled, and our community is very fortunate, to have as fine a healthcare provider as St. Luke’s acquire Easton Hospital and expand its presence in our area,” said Easton Mayor Sal Panto, Jr.

“We are very grateful St. Luke’s is able to ensure our community hospital continues to serve our school community, which is important for our children’s health and wellbeing. We look forward to partnering with the network in the years ahead,” said Wilson Area School District Superintendent Doug Wagner.

“The Two Rivers Health & Wellness Foundation supports and appreciates St. Luke’s University Health Network’s efforts to preserve Easton Hospital during this very challenging time. This acquisition aligns well with the Two Rivers Health & Wellness Foundation’s 19-year-old mission of working to improve the health and wellness of the residents of Northampton County. We look forward to St Luke’s maintaining and ultimately expanding the provision of high-quality community and health services to the residents of the greater Easton community,” said Two Rivers Health & Wellness Foundation Chairman Paul E. Brunswick.

“Happy to see our St Luke’s working to save Easton Hospital and preserve a downtown healthcare presence for our city,” said former heavyweight boxing champion Larry Holmes.

St. Luke’s University Health Network is a regional health network and major medical academic center with 11 hospitals and more than 325 outpatient sites serving 11 counties in Pennsylvania and New Jersey.

Steward Health Care is the largest private, tax-paying physician-led health care network in the United States. Steward, headquartered in Dallas, Tex., operates 35 hospitals in the United States and the country of Malta, and employs more than 40,000 healthcare professionals.