We suspect NewsLanc was not alone in pleading with LNP to investigate or at least substantively report on the ‘proposed’ but apparently de facto merger of the billion dollar Lancaster General Hospital into the University of Pennsylvania Health System.
On Sunday, LNP responded with “LGH/Penn merger: Questions, but no answers yet” and, as we had urged, it was by one of their two or three better investigative reporters.
Although unable to pry information out of LGH, the article did provide important information from other sources.
Below we excerpt the article and follow with observation:
LNP:“Dr. Holmes Morton is ready to welcome the University of Pennsylvania Health System to Lancaster County with open arms…”
NL: Holmes Morton, MD, is a world renown medical leader and a valuable contributor to our community. His organization does receive a significant portion of its funding from LGH, one of the very few organizations that do.
LNP: “LG Health has been lauded for its largesse; it makes sizable annual payments in lieu of taxes to the city and School District of Lancaster. Penn has come under fire for making no such payments at all.”
NL: LGH is a 501(c)3 Public Charity, owned and ostensibly operated by the community. Nevertheless, even including its payments in lieu of taxes to the City, it contributes only about 2% of it vast earnings (an average of about $100 million a year) to the community. If they paid out 10% of their earnings (another $8 million), it would make a huge difference for city, schools and the library.
What it does do is constantly expand its tentacles into medical practices and other auxiliary health services. It has created a near monopoly of care which enables it to charge insurance companies and uninsured far beyond what otherwise would be the case. This results in businesses, families and individuals paying higher insurance premiums. In short, the publicly owned health system rips off the public.
LGH is not the only hospital system that exploits tax free status but provides no more benefits to the community than do ‘for profit’ hospitals. This issue is much reported upon and in places litigated.
LNP: “Local leaders say they understand the public has questions and concerns. But most say they trust LG Health’s board to do the right thing for Lancaster County…”
NL: Visit LGH’s web site and take a look at their board of trustees. No African-Americans are members. If indeed there are Latinos, there are not many. All are members of the elite Lancaster society. And none were selected by the city, the county, or from another non-governmental organization. In fact, they all were selected by the hospital leaders and validated by the board…thus perpetrating the same mindset and avoiding dissident voices.
LNP: “Here’s what we know for certain about the deal: Almost nothing.”
“[Lancaster Mayor Rick] Gray said LG Health is by far the largest voluntary non-profit contributor; if the money went away, “the impact on city residents would be immediate and recognizable: reduced services and/or a tax increase would follow.” He said LG Health officials have assured him that the payments have been included in merger discussions…”
NL: LGH’S voluntary payment in lieu of taxes is only a modest portion of what would be the real estate taxes if the hospital were not tax exempt.
LNP: “But in fact, Penn has been criticized in Philadelphia for failing to pay what critics say is their ‘fair share.’…
“In early December, Penn students demanded the school make $6.6 million in PILOT payments to the School District of Philadelphia. On Dec. 9, Penn students protested at the university president’s holiday party, briefly commandeering the event and demanding the university make the payments…”
NL: If University of Pennsylvania doesn’t give a d–n for Philadelphia schools and charities, it is hard to believe that they will make an exception for Lancaster.
There is one thing that LNP does not mention: Further consolidation of hospitals enhances their monopolistic control and leads to even higher insurance rates And who benefits: Highly paid administrators and certain members of the medical staffs.
Has LGH commissioned studies about the desirability of the merger? They should have and they should share them with the public.
LNP’s editorial board should challenge Lancaster General to publish the terms of the proposed merger and then to hold a meeting to obtain public comment. But if they do so, that will be another pleasant surprise.
I don’t believe this potential “merger” involves just Lancaster General Hospital, as your last paragraph implies. I think it envelops the entire Lancaster Health System umbrella.
What is your take on this? Do you have ideas about this, other than inflammatory ones about what’s possibly being withheld from the public?
LGH employs my primary care physician. I’m also a patient at a number of LGH specialties. So I’d appreciate some additional facts.
If Lancaster’s daily paper isn’t providing them, to whom should I turn?
EDITOR: You are correct. We should have said Health, not Hospital.
As far as we know, there is no one to turn to for information. That’s what makes the situation so disgraceful.
Who benefits here? I know medicine is gobbling up pieces of the pie to see which group (and/or insurance carrier) can take the biggest bite of the available market.
In an era where “person-centered care” is touted as the “new best practice”, is bigger really better?
What does Penn offer that Hershey doesn’t?
Why isn’t LGH exploring options with HMC?
It would be a lot more convenient for patients.
Penn is an excellent hospital. They are one of the best. Cutting edge with knowledge and procedures.
Have traveled there many times over the years.
Don’t kid yourselves. This smacks of ego of the administrators who are not truly devoted to the community. Just look at how Marion McGowan was treated and pushed out.
There is more than meets the eye and this is not in the best interest of the public.
The LGH Board of Directors should be addressing the public. And I might also note that this is not a gender neutral group who have bought the rhetoric from non-physicians and non-nurses who run the hospital, namely Tom Beamon and Jan Bergen.
This will not improve care; it will syphon funds to Penn. There is no “weakness” in our healthcare system and LGH is a cash cow. Penn gets LGH, the community loses autonomy, and the LGH leadership gets promises of golden parachutes for selling out a public entity.
Lastly, let’s remind each other that Penn is the origin of the ObamaCare plan. I have said enough and now am voting with my feet. If you are fed up also, then boycott services or write your congressman and demand transparency.
Has this been brought to the Attorney General as a violation of public trust? Has anyone even gotten the idea that this is a sale of our healthcare to Penn?