Pennsyvlania Health groups talking merger? : Jerry Lynott

Discussions of a merger between Scranton’s Community Medical Center and Moses Taylor Hospital ended last year, but talk persists inside the local health care community of a new arrangement with another health care organization.According to a published report, CMC “has been in close negotiations” with Geisinger Health System of Danville. Pennsylvania Health InsuranceThe report attributed the comment to Denise Cesare, chief executive officer of Blue Cross of Northeastern Pennsylvania.However, a spokeswoman for the nonprofit health insurance company backed away from confirmation.“We have heard the rumors that others have been hearing,” said Michelle Davidson, Blue Cross spokeswoman.Blue Cross had been involved in the earlier negotiations and committed $50 million of its surplus to fund the union that was scrapped because of concerns raised about competition and funding by the state attorney general. Pennsylvania Health InsuranceGeisinger, an integrated health system with its own hospitals, doctors and insurance programs, competes against Blue Cross in the Northeastern Pennsylvania marketplace. It has invested more than $75 million in its Geisinger Wyoming Valley Medical Center in Plains Township and transferred most of its inpatient services there from its Geisinger South Wilkes-Barre facility since buying the former Mercy Hospital in late 2005.Neither CMC nor Geisinger would confirm the report.“We’re always talking with other providers about the way we can improve care for our community,” said Amy Lingobardo, a spokeswoman for Geisinger Northeast in Wilkes-Barre.CMC president and chief executive officer John Nilsson offered a similar statement.In an e-mail he said it is CMC’s policy “not to comment on the possible outcome of any discussions until and unless there is something concrete to report.”There was definitive news in March 2008 when CMC and Moses Taylor announced they ended their efforts to form a partnership.The hospitals and Blue Cross called off the merger after the Attorney General’s Office said it believed the proposed plan violated antitrust laws. The office said it believed the joining of the hospitals would result in less competition among health care providers and increased costs.The funding from Blue Cross would have paid to recruit doctors, improve services and retire debt of the struggling hospitals.The insurance company and Wilkes-Barre General Hospital also parted ways in 2007 over a plan to provide $40 million in funds for upgrades. Since then the hospital’s parent, the Wyoming Valley Health Care System, was purchased by Community Health Systems Inc. As a result of the $271 million deal, General Hospital became part of the for-profit company.

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