The June 8 front page banner headline reads “LGH’s healthy surplus: $136 million. Up from $106 million; other side of coin is millions it gives in free medical care and its investments in community.”
WATCHDOG: The article lavishes praise on Lancaster General Hospital, some of which may be well deserved. But the Sunday News ignored its journalistic responsibility to obtain offsetting comments from those who are critical of LGH practices.
In fact, the “other side of coin” is, as some believe, that LGH has created an oligopolistic (not quite a monopolistic) condition over the years by acquiring or influencing local medical practices, and by inducing these practices to refer patients to LGH and other affiliated physicians, thereby gaining a huge competitive advantage over other hospitals.
As a result, LGH is in a position to negotiate favorable contracts with medical insurance companies that have no where else to go that would be acceptable to their customers. In turn, the insurance providers raise rates to offset higher fees to applicants from the Lancaster area! So for a large part, LGH success is at the public’s expense.
The article is an example of how consciously or unconsciously the big five – Fulton Bank, Franklin & Marshall, the High Group, Lancaster General Hospital, and Lancaster Newspapers – are supportive of one another and are able to further their mutual agendas which are not always in the interest of the public.
