The Pennsylvania Department of Health and Pennsylvania Attorney General Kathleen Kane have given the go-ahead to the merger between Danville-based Geisinger Health System and Lewistown (Pa.) Hospital.
Effective Friday, Lewistown Hospital will become Geisinger-Lewistown Hospital. Geisinger President and CEO Glenn Steele Jr., MD, said in a news release the system is "pleased" state officials were "diligent, constructive and collaborative" in reviewing the transaction.
The deal sparked antitrust concerns from officials within the attorney general's office who were concerned it would lessen or eliminate competition in the surrounding counties. Geisinger and Ms. Kane's office reached an agreement that outlined several conditions:
• There will be no arbitrary price increases for hospital and physician services at the Lewistown facilities.
• Lewistown Hospital will be operated as an acute-care hospital for at least eight years.
• Lewistown's employed primary care physicians can leave Geisinger's employment up to two years after the merger is complete, and they can continue to practice in the area without restrictions.
• Current contracts between Lewistown Hospital and its employed physicians will be honored, and future contracts will be negotiated in good faith.
• Geisinger will continue to allow tiered products within health plans.
Under the definitive merger agreement, Geisinger will invest more than $50 million to renovate Lewistown Hospital. The deal now gives Geisinger seven acute-care hospitals, a children's hospital and a heart hospital. Geisinger is also in the process of affiliating with Holy Spirit Health System in Camp Hill, Pa., with a final agreement expected early next year.
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