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OAG deputies recommend oversight for hospital mergers

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Skip to main contentYou have permission to edit this article.EditSUBSCRIBELOGINHomeBest of the Best ContestE-PaperNewsSportsEND ZONEPodcastObituariesGet AppNewsletterPuzzles, Comics &amp; GamesCelebrationsPublic NoticesEXPLORE the Niagara FrontierContact UsSubscribeClassifiedsCommunityNewsOpinionShopValley VoicesHARRISBURG — As hospital mergers and acquisitions continue, industry observers warned state lawmakers Wednesday about deleterious impacts on patients while chief deputies with the Office of Attorney General called for stronger oversight including adopting an antitrust law, something they said all states but Pennsylvania currently have.Patrick Keenan of the Pennsylvania Health Care Access Network was among the testifiers at an informal hearing of the state House Health Committee’s Subcommittee on Hospital Facilities. He said of 15 hospital closures across the commonwealth in the past five years, all but one was preceded by a change in ownership, merger or acquisition.The average time between such changes and a facility closure hastened rapidly in that period, Keenan said, dropping to 4.1 years compared to 7.6 years across the past two decades.Mergers and acquisitions can disrupt patient access, he said, citing the one-hour drive residents near UPMC Bedford must make to the in-network hospital, UPMC Altoona, for labor and delivery care. He spoke of the closure of Sunbury Community Hospital, shuttered as part of UPMC’s consolidation of services in 2020 three years after its acquisition. The closest in-network hospital is at least a 45-minute drive. He said patients encountered access and health care coverage issues as a result.“We need a stronger public interest review process to look at those things and allow local communities to have input in the future of care in their area,” Keenan said.Geisinger’s acquisition by California-based Kaiser Permanente is still pending federal regulatory approval — an acquisition eyed by health care leaders across the industry.About 75,000 Kaiser employees went on strike in multiple states Wednesday. Geisinger employees, however, aren’t yet under the Kaiser umbrella.The rural hospital and health care network, one with its own insurance plan and an innovative DNA sequencing program, MyCode, is tabbed to become the flagship member of a new nonprofit health system, Risant Health. At least four other members are intended for the subsidiary, though no further announcements have been made. Kaiser Foundation Hospitals dedicated up to $5 billion toward Risant and a minimum of $400 million once the Geisinger deal closes, according to a recent financial statement.The Office of Attorney General reviews a deal like what’s pending with Geisinger and Kaiser, that is, whenever a nonprofit, charitable health care entity would transfer its assets. It’s done to ensure that the public interest is fully protected, according to spokesman Brett Hambright, who wouldn’t speak to deal-specific inquiries.“This comprehensive process involves review of financial, corporate, and transactional information. Our final determination will consider whether Pennsylvanians’ access to high quality, cost-effective health care is fully maintained,” Hambright told CNHI Pennsylvania.Rep. Jessica Benham, D-Allegheny, asked during Wednesday’s hearing about the review process for the Geisinger-Kaiser deal.Chief Deputy Eugene Herne of the Charitable Trusts and Organizations Section with the Office of Attorney General said he couldn’t get into specifics. As to standard review protocol, he said staff requests documents, considers holding a public hearing when warranted and has give-and-take with the parties involved to acquire supplemental information.Herne said reviews typically last from 3 to 7 months.“If everything we thought was above board we wouldn’t file any objections or say we have no objections,” Herne said.Chief Deputy Tracy Wertz of the Antitrust Section said investigations can result in litigation or consent decrees. They can also result in no action.Wertz encouraged lawmakers to consider adopting a state-level anti-trust law. It could compel entities to provide pre-merger notifications to the public, she said. It could also empower the office to subpoena the parties involved.“Pennsylvania is the only state without an anti-trust statute. We’ve tried for probably over 20, 30 years but have not been successful,” she said.“They’re not required to tell us,” Wertz said about merger notifications. “The only way we find out about cases is if parties voluntarily tell us, we read about press reports or someone complains to our office.”Dr. Rachel Werner of the University of Pennsylvania serves as executive director of the Leonard Davis Institute of Health Economics. She’s an expert in health care markets and the impacts on health care costs and quality.“One of the most concerning trends that we see in health care today is decreased competition or market consolidation,” Werner said.COUPON DEALSNEWSPAPER ADSSorry, there are no recent results for popular commented articles.To play the media you will need to either update your browser to a recent version or update your Flash plugin.Get Breaking NewsSign up now to get our FREE breaking news coverage delivered right to your inbox.Powered by BLOX Content Management System from BLOX Digital.

Skip to main contentYou have permission to edit this article.EditSUBSCRIBELOGINHomeBest of the Best ContestE-PaperNewsSportsEND ZONEPodcastObituariesGet AppNewsletterPuzzles, Comics &amp; GamesCelebrationsPublic NoticesEXPLORE the Niagara FrontierContact UsSubscribeClassifiedsCommunityNewsOpinionShopValley VoicesHARRISBURG — As hospital mergers and acquisitions continue, industry observers warned state lawmakers Wednesday about deleterious impacts on patients while chief deputies with the Office of Attorney General called for stronger oversight including adopting an antitrust law, something...

OAG deputies recommend oversight for hospital mergers

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