Grove City Medical Center and Allegheny Health Network announced Monday that the two health care entities are merging.

Pending government approval of the merger, the two organizations expect to close on an affiliation agreement in the next few months. The merger would establish Grove City as Allegheny Health Network's ninth owned hospital.

“Today is a great day for Grove City and Mercer County, and an important milestone for Grove City Medical Center as we embark upon the next chapter in our organization's long history of service to this community,” said Timothy R. Bonner, chairman of the hospital's board of directors.

As part of the agreement, Allegheny and Grove City will help to fund a new independent Grove City Health Care Foundation with an initial endowment of up to $30 million to be spent in Grove City on health and wellness initiatives. A local board made up primarily of current Grove City board members would determine how the resources are allocated.

Allegheny would also invest an additional $40 million over the next 10 years to enhance Grove City's clinical programs, technological capabilities and physical infrastructure. Clinical services that will be added or enhanced include primary care, neurology, oncology, cardiology, behavioral health, orthopedics, pediatrics and general surgery.

The network will also expand telehealth services at the hospital to include tele-dermatology, tele-stroke and autoimmune consultations as well as install the Epic electronic health record system at Grove City's main campus and satellite facilities.

“Establishing strong partnerships with outstanding health care institutions is a key component of our strategy for building a world-class health and wellness company that provides an unsurpassed experience and the best possible outcomes for our patients and members,” said David Holmberg, president and CEO of Highmark Health, Allegheny Health Network's parent company.