UPMC swallowing another hospital system

[JPZenger]

Last edited Mon Jun 24, 2013, 10:09 AM - Edit history (1)

http://www.post-gazette.com/stories/business/news/some-at-altoona-regional-health-system-urging-caution-in-upmcs-acquisition-692480/

UPMC is PA's largest employer. They are now trying to swallow the Altoona area health care system. That system had already swallowed the number 2 hospital in the county. Because UPMC owns so much of the health care system in western PA., it sets them up for major fights with health insurers, including Highmark. We are reaching monopolistic conditions.

The legislature is getting drawn into battles over UPMC's exemption from local real estate taxes, particularly in Pittsburgh. They are working on the "Don't tax UPMC Act"

http://makeitourupmc.org/
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http://www.law360.com/articles/373222/west-penn-says-antitrust-suit-aims-to-shield-upmc-monopoly

To try to off-set UPMC's monopoly and their hard-ball negotiating with Highmark, Highmark is now trying to merge with the 2nd largest hospital system in western PA. UPMC is challenging the merger in court.
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The tallest building in western PA is the USX building (formerly US Steel). As that company has shrunk, UPMC has taken over their space and is now the largest tenant. That is why UPMC signs are on the tops of the building, shining down on their domain.

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Meanwhile, UPMC is starting a major PR blitz.

http://triblive.com/opinion/colinmcnickle/4208942-74/upmc-highmark-patients#axzz2X8r6nQjn

UPMC not only owns 20 hospitals and 400 clinical locations, but also runs an insurance business, and has 55,000 employees.
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People in eastern PA. have a bad feeling about this whole situation, because a previous Pittsburgh-based hospital system took over many of the hospitals and medical schools in Philadelphia, before they went belly-up in the 1990s. Some funds that were supposed to be dedicated to specific purposes were raided to try to keep that system afloat. It was the Allegheny Health and Educational Foundation. Some of those hospitals closed, some were taken over by a for-profit, and the educational parts of the system were taken over by Drexel University.
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UPMC was legally separated from the University of Pittsburgh a number of years ago, but continues to be closely affiliated for educational purposes.

[blue neen]

1. Meanwhile, as things stand now,

if you have any type of Blue Cross/Blue Shield, you can't use UPMC facilities (as of Dec. 31, 2014).

Most people I know have some type of BC/BS health insurance, so what UPMC is trying to prove here is a mystery.

This is a gigantic disaster.

[JPZenger]

2. More

I don't have a dog in this fight, but I find the conflict interesting and far-reaching.
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A recent letter to the editor:

http://www.post-gazette.com/stories/opinion/letters/upmcs-game-plan-692336/
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Some people are also wondering why UPMC seem to be putting so much effort into overseas initiatives.
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Here's a satirical fake twitter feed for the head of UPMC:

https://twitter.com/JeffRomoffUPMC

[Curmudgeoness]

3. I have problems with both sides in this story.

I do think that UPMC is making an effort at monopoly status, and they have moved into offering their own insurance. But I also have a problem with an insurance company, Blue Cross/Blue Shield, buying up health care facilities as well.

IMHO, insurance companies should be in the insurance industry, and health care facilities should be in the health care industry. When you allow these two industries to co-mingle, you are sure to have problems.