St. Luke’s University Health Network is in talks to acquire Grand View Health in Bucks County

St. Luke’s University Health Network, a nonprofit with a large presence in the Lehigh Valley and Northeastern Pennsylvania, is in talks to acquire Grand View Health in Bucks County.

The talks became public last week, following two notable health-care deals last month: The University of Pennsylvania Health System reached a definitive agreement to acquire Doylestown Health, also in Bucks County, and Thomas Jefferson University completed its acquisition of St. Luke’s competitor Lehigh Valley Health Network.

A St. Luke’s spokesperson confirmed the talks Monday.

If St. Luke’s completes the acquisition of the nonprofit Grand View in Sellersville, it would extend the system’s reach into the Philadelphia market. Right now, St. Luke’s closest hospital to Philadelphia is St. Luke’s Upper Bucks in Milford, which opened in 2019 as a replacement for an older facility and was expanded last year.

In Grand View, which has close clinical ties to Penn Medicine, St. Luke’s would acquire a hospital and related businesses that have had huge operating losses in recent years.

In each of the last three fiscal years, Grand View has lost more than $40 million. The loss reached nearly $50 million in fiscal 2024, when Grand View had $279 million in revenue. Grand View spent $200 million to open a new patient pavilion in the summer of 2023.

Grand View would be St. Luke’s 12th full-service hospital. In fiscal 2024, St. Luke’s had $3.6 billion in revenue and $111 million in operating income. Its rival Lehigh Valley Health Network had $4.5 billion in revenue and $16.5 million in operating income.

LehighValleyNews.com first reported Friday evening that St. Luke’s and Grand View had signed a letter of intent. That agreement is the first formal stage of a potential acquisition. It sets the stage for negotiations and financial analysis.