“In economics, a monopoly exists when a specific individual or an enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it.” – Wikipedia
Lancaster General Health has such a position in the Lancaster County market place, and through acquisitions and mergers is continuously expanding its control. For example, just recently it acquired the Heart Group and has opened three Urgent Care clinics.
In other markets, insurance companies are able to negotiate competitive rates since they have a choice of two or three hospitals. However, here in Lancaster, most need to contract with LGH in order to sell policies.
The higher prices they must pay are a major reason for LGH’s extraordinary profitability, continuously among the highest in the state. In a typical year, LGH earns well over a $100 million dollars.
Consequently, those seeking health insurance in Lancaster County are charged more by the companies to compensate the insurer for the higher cost of providing care at LGH. So the difference between what the cost of health care insurance would have been in a normal competitive situation and what we pay is comparable to a tax… a tax imposed by and benefiting LGH.
Since LGH is a Public Charity, this would not necessarily be a bad thing were the excess earnings were distributed in a manner that would best serve the community. But the community has no say whatsoever concerning how LGH spends its profits. There is only one public meeting a year which is not widely publicized. A LGH grants were only 1.5% of profits in 2007 and 6% in 2008.
Furthermore, the trustees are self perpetuating, with one board nominating and electing the next.
Compounding the situation is the propaganda and distortions that emanate through LGH’s public relations department and the stone wall erected by LGH between itself and the media…all media!
It is time for the county, city, school district and the local media to begin to hold LGH to account. Instead of devoting the hospital’s resources to empire building and lavish compensations and perks, LGH should be directing a significant portion of its earnings towards benefiting the community at large, especially in matters of public health and education.
A place for LGH to start would be to approve the Urban League’s request for funds to operate a first rate syringe exchange in Lancaster. In addition to reducing the spread of social diseases, syringe exchanges test clients for HIV / AIDS, provide counseling, and help those seriously addicted to obtain treatment. They are as important in protecting our loved ones as are the police and fire fighters.
Another worthy cause would be to help support the libraries throughout the county. They are underfunded, and yet serve several thousand visitors each day.
LGH is a ‘Public Charity.’ Yet the trustees and administrators treat it as their fiefdom. By introducing transparency and a sense of responsibility towards the greater community, LGH can reach the same high level in Public Charity responsibility as it has achieved in health care.
