The University of Pennsylvania's Lancaster General Hospital has begun work on a $60 million expansion in downtown Lancaster that will allow the 533-bed facility to convert to all private rooms.

Penn completed its acquisition of Lancaster General on August 1. No money changed hands, but the deal added $1 billion in net assets to Penn's balance sheet. Combined, the two systems had $76.76 million in operating profits on $1.29 billion in total revenue in the quarter ended Sept. 30.