An article “Hospitals’ profits plunge here” on LancasterOnLine.com reports “Heart of Lancaster Regional Medical Center’s profits dropped 75 percent. Ephrata Community Hospital’s profits dipped 50 percent and Lancaster General Hospital’s dropped 30 percent.”
It goes on to say “… only LGH operated at what industry experts consider is a healthy margin.”
Yes, a profit of $75 million during the worst year for the economy since the Great Depression is very “healthy” and reflects an oligopolistic (almost monopolistic) dominance of the health care market.
Exceptional profits are in large part due to the higher fees that LGH can charge insurers who, in turn, pass along the added cost to the local population via higher premium rates. NewsLanc is eager to learn how much ‘Public Charity’ LGH increased its contributions to worthy causes above its paltry 1% of the prior year.
Although NewsLanc has requested access to the 2008 / 2009 federal report, LGH has not obliged. There is a federal requirement that the report be made available upon request or posted on the Internet by May 15th. We look for it each day.
