Highmark Health and Allegheny Health Network, both based in Pittsburgh, will spend more than $1 billion to construct new facilities and renovate existing medical buildings over the next four to five years.
Highmark Health, which owns AHN, will use $700 million to fund renovations at the network's existing facilities, a new 160-bed hospital in Pine Township, Pa. and four neighborhood hospitals in partnership with The Woodlands, Texas-based Emerus, a neighborhood hospital operator.
The expansions are expected to create more than 800 new jobs in the region. The facilities investment comes after Highmark Health announced earlier this year that they would invest $315 million to support AHN's cancer center and the Erie, Pa. market.
"Through our partnership with Emerus and the other significant capital investments planned for AHN, we are building a uniquely patient-centric health care system and taking every step necessary to ensure the network’s exceptional care is more readily available to patients and our members in settings close to where they live and work," said David Holmberg, Highmark Health's president and CEO.
Groundbreaking on the proposed 160-bed hospital, which still needs regulatory approval, is expected to occur next year. Construction will be complete in 2021.
The four joint-venture neighborhood hospitals — ranging from 15,000 to 60,000-square-feet — will offer a variety of services including emergency departments, 10 to 12 inpatient beds and clinical services.