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FTC fighting possible merger of PinnacleHealth and PSU Hershey Medical Center

HARRISBURG, Pa.– The Federal Trade Commission is fighting the merger of PinnacleHealth and Penn State Hershey Medical Center. Hearings continued today at ...

HARRISBURG, Pa.--

The Federal Trade Commission is fighting the merger of PinnacleHealth and Penn State Hershey Medical Center. Hearings continued today at the United States District Court in Harrisburg.

Court papers say the two would combine to be 64% of the market. The closest competitor would be Holy Spirit with about 15%.

Both legal teams did not want to talk during the on going process.

In the court papers, the FTC said the merger would lessen competition in the market for services for the Harrisburg region. It goes on further to say the cost for healthcare could potentially go up and the quality go down. They believe this because they would not be as much competition.

In a joint statement, PinnacleHealth and Penn State Hershey said,

"We strongly believe that integrating our health systems is in the best interest of our patients, the community and both organizations. Combining the best attributes from both organizations will create a health system sufficient in scope, depth and experience necessary to position the health enterprise for success in the new healthcare economy. This new enterprise will ensure the central Pennsylvania community has access to an expanded network of providers that can manage the health of populations across the care continuum. The end result will be higher quality care at a lower cost."

Jim Owens of Hershey said he does think the merger would benefit customers.

"I think it's a good thing," he said. "I think it will help the end users and more and more in the industry that's what we're seeing everywhere."

The hearings are expected to last all week. A judge's decision is not expected until May or June.

 

 

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