Penn State Health CEO Steve Massini offers some pretty strong arguments to support his company’s proposal to purchase Holy Spirit Hospital. So, he’s perplexed that Attorney General Josh Shapiro and the Federal Trade Commission haven’t already signed off on the deal.
First, all of the parties involved think it just makes good business sense. Geisinger president and CEO Dr. Jaewon Ryu says he’s is excited about turning over the West Shore hospital to Penn State Health, which is seeking to expand in the region.
Geisinger purchased Holy Spirit in Oct. 2014 and has invested more than $120 million in the facility to improve trauma, stroke and diabetes care. And Ryu thinks Penn State Health is poised to take Holy Spirit to the next level in its service to the region.
Sister Mary Edward, Provincial of the Sisters of Christian Charity that founded the facility, has the same hope. She’s satisfied Penn State has committed to maintaining the hospital’s “Catholic tradition,” and will invest in the hospital’s future. Sisters of Christian Charity started Holy Spirit six decades ago, and the hospital already collaborates with Penn State Health on neurosurgery and cardiac surgery programs.
Sister Mary Edward, Dr. Ryu and Massini told PennLive Editorial Board this week their plans call for everything to be finalized by October 2020. But for that, they need both the Attorney General and the FTC to signal their approval. There are solid reasons for them to do so.
Gov. Tom Wolf and Secretary of Health Dr. Rachel Levine visit the Penn State Health Milton S. Hershey Medical Center to thank health care workers for their efforts during the coronavirus pandemic, June 24, 2020. Dan Gleiter | dgleiter@pennlive.com
First, the parties involved say Penn State Health’s purchase of Holy Spirit is more than just a good business move for them. They say it would strengthen health care services for everyone in a region that is growing and needs more medical facilities.
Penn State Health is already building another hospital in Hampden Twp., and acquiring Holy Spirit with its 100 doctors and ambulance service would help ensure it opens late next year as expected.
But even the Hampden facility won’t be big enough to meet the long-term needs of the community, Massini said. Another hospital will be needed and purchasing Holy Spirit would save millions of dollars required to build a new facility.
Penn State Health celebrates the topping off of Penn State Health Hampden Medical Center, November 8, 2019. The acute care hospital, located off of Wertzville Road in Cumberland County, will be completed by summer of 2021. Dan Gleiter | dgleiter@pennlive.com
“Those are very expensive investments,” Massini said. “If we are not successful here, we would have to duplicate hundreds of millions of dollars of cost.” And there’s no doubt consumers would have to pay those costs in the form of higher hospital bills.
There’s yet another economic incentive – maintaining jobs.
The parties still are hammering out the final terms, but Penn State Health is hoping to prevent layoffs at Holy Spirit. The sale most certainly would prevent the sort of economic disruption a hospital closure would bring.
Hundreds of jobs are associated with Holy Spirit Hospital. If the Penn State purchase proposal doesn’t meet regulatory muster, those jobs just might be in jeopardy.
First responders parade by Geisinger Holy Spirit Hospital to honor frontline healthcare workers. April 22, 2020. Dan Gleiter | dgleiter@pennlive.com
As if that’s not enough, we should remember Holy Spirit also is one of the few facilities in our region that provide behavioral and mental health services, including a locked unit for people who are seriously ill.
That bring us to the heart of the issue: would Holy Spirit even survive if Penn State doesn’t take it over?
None of the parties wanted to answer that question during the editorial board meeting, but it’s one Shapiro and the FTC should ponder as they weigh their decision on whether to approve the deal.
Penn State Health’s purchase of Holy Spirit will help ensure another vibrant hospital network remains in the region to strengthen competition and prevent any one organization from becoming too dominant.
A competitive health care marketplace provides consumer choice and helps keep costs down. That’s a powerful argument that should seal the deal for health care consumers as well as for regulators.
With so many strong arguments in favor of the proposed sale, we agree it is indeed perplexing Shapiro and the FTC have not rushed to bless it. It is time they did so.
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