OT: Pitt hospital and med news

[CrazyPaco]

There have been three major actions in the last couple days related to hospitals, not including the delivery of the annual state of the med school address.

First, if you want to understand more about the role of the med school in the university...and how big it is ($2 billion budget just for the med school) and how it functions within the university...a video of the address is online here. The address is also summarized in this article.

And a big take home message from it is that Pitt's schools of the health sciences received $190 million from UPMC last year, that such an amount is an unprecedented level of support from any university's affiliated medical center, and how important the continued success of UPMC is to maintain that level of support.

That said two big things happened today with UPMC. One, it moved definitively outside the Western Pennsylvania region today when Susquehanna Health, a four hospital system in Lycoming (flag-shipped in Williamsport) and Tioga counties, officially signed on to becoming part of UPMC. UPMC plans to make Susquehanna a regional trauma hub in north central PA, and joins its other regional hubs in northwestern PA (UPMC Hamot in Erie) and southeast central PA (UPMC Altoona).

More quietly today, New York state also gave what I believe is the final approval for WCA hospital in Jamestown, NY to merge into UPMC Hamot. This will be UPMC's first domestic hospital outside of Pennsylvania. As a side note, I know UPMC has also been asked to submit merger proposals for the hospital in Cumberland, MD as well.

Another major development happened a couple weeks ago and came to a conclusion yesterday. Penn State's board of trustees formally ended pursuing a merger with Pinnacle Health in Harrisburg area after the 3rd Circuit court of appeals upheld the FTC's objections to the merger. I bring this up as an example of what it could be like being on the other side of the divide with the have-nots. The problems for Penn State's medical school and center are exemplified when you read the initial reasons they were pursing such a merger in the first place. They're sort of in a bind now, whereas UPMC continues to build a network that feeds the mothership that allows it to bring people like Jose-Alain Sahel to Pitt from France, plow money into to its enterprise division that is spinning off tech companies in Pittsburgh, and increase its pool of big data for initiatives in research, precision medicine, and enhancing operational efficiencies.

 

[TIGER-PAUL]

thank you for the info

 

[CrazyPaco]

There are few independent hospitals left. Here's what's going on currently with the systems spreading through the state (minus the Philly region which is dominated by Penn, Temple, Jeff, and Drexel). Several systems are out-of-state for profits (like CHS).

 

[pitt-girl]

There are few independent hospitals left. Here's what's going on currently with the systems spreading through the state (minus the Philly region which is dominated by Penn, Temple, Jeff, and Drexel). Several of out-of-state for profits (like CHS).

Paco - reading this, Penn State Mount Nittany Health?

 

[CrazyPaco]

Paco - reading this, Penn State Mount Nittany Health?

Mount Nittany Health is not part of Penn State Health. At least not yet. It is independent of Penn State.

Note that this map shows intent-to-merge deals (not necessarily completed mergers) under the intended parent system. So Tyrone hospital in Blair County shows as part of Penn State Health because they've signed an intent to merge even though it hasn't officially happened yet. It also doesn't label long-term/specialty acute care facilities or state mental facilities.

Update: Tyrone and Penn State ended discussions this year and decided not to merge.

 

[pittzap]

There have been three major actions in the last couple days related to hospitals, not including the delivery of the annual state of the med school address.

First, if you want to understand more about the role of the med school in the university...and how big it is ($2 billion budget just for the med school) and how it functions within the university...a video of the address is online here. The address is also summarized in this article.

And a big take home message from it is that Pitt's schools of the health sciences received $190 million from UPMC last year, that such an amount is an unprecedented level of support from any university's affiliated medical center, and how important the continued success of UPMC is to maintain that level of support.

That said two big things happened today with UPMC. One, it moved definitively outside the Western Pennsylvania region today when Susquehanna Health, a four hospital system in Lycoming (flag-shipped in Williamsport) and Tioga counties, officially signed on to becoming part of UPMC. UPMC plans to make Susquehanna a regional trauma hub in north central PA, and joins its other regional hubs in northwestern PA (UPMC Hamot in Erie) and southeast central PA (UPMC Altoona).

More quietly today, New York state also gave what I believe is the final approval for WCA hospital in Jamestown, NY to merge into UPMC Hamot. This will be UPMC's first domestic hospital outside of Pennsylvania. As a side note, I know UPMC has also been asked to submit merger proposals for the hospital in Cumberland, MD as well.

Another major development happened a couple weeks ago and came to a conclusion yesterday. Penn State's board of trustees formally ended pursuing a merger with Pinnacle Health in Harrisburg area after the 3rd Circuit court of appeals upheld the FTC's objections to the merger. I bring this up as an example of what it could be like being on the other side of the divide with the have-nots. The problems for Penn State's medical school and center are exemplified when you read the initial reasons they were pursing such a merger in the first place. They're sort of in a bind now, whereas UPMC continues to build a network that feeds the mothership that allows it to bring people like Jose-Alain Sahel to Pitt from France and plow money into to its enterprise division that is spinning off tech companies in Pittsburgh.

Funny you mention this. My sister-in-law works for Susquehanna Health in Williamsport and my brother texted me an hour ago and told me this.

 

[dclionsfan]

This is not good for the cost of our healthcare folks.

 

[CrazyPaco]

This is not good for the cost of our healthcare folks.

False.

 

[ThePanthers]

Any moment SMF will come in and say we should tear down the hospitals in Oakland and move them somewhere else so we can build a stadium.

 

[HailtoPitt]

Any moment SMF will come in and say we should tear down the hospitals in Oakland and move them somewhere else so we can build a stadium.

Maybe we should tear down the Pete and build more medical research facilities and classroom space? Pitt can play at the PPG Paints Arena.

 

[ThePanthers]

Maybe we should tear down the Pete and build more medical research facilities and classroom space? Pitt can play at the PPG Paints Arena.

Agree.

 

[Pitt83Panther]

UPMC's reimbursements to unaffiliated hospitals is atrocious.
Their insurance plans suck....high deductibles....they don't want to cover any procedures.
Don't buy their insurance...caveat emptor.
I KNOW...I have their insurance...I've worked in healthcare for 30+ yrs....it's a joke.
Blame it on Obama Care if you want.
H2P

 

[JHud986]

Actually my UPMC coverage is pretty good, I'm satified. I guess it is just what the company is
will to pay for.

 

[pittdan77]

This is not good for the cost of our healthcare folks.

Actually, most economists disagree and project healthcare costs to level off over the next few years because of consolidation.

It's bad for insurance companies that would rather bully hospitals into a "take it or leave" it scheme.

 

[pittdan77]

Mount Nittany Health is not part of Penn State Health. At least not yet. It is independent of Penn State.

Note that this map shows intent-to-merge deals (not necessarily completed mergers) under the intended parent system. So Tyrone hospital in Blair County shows as part of Penn State Health because they've signed an intent to merge even though it hasn't officially happened yet. It also doesn't lable long-term/specialty acute care facilities or state mental facilities.

Tyrone is alive and well because of UPMC. Many doctors who did not want to be absorbed into the UPMC system opened up shop at Tyrone. Like Nason (Roaring Spring), on the other side of Altoona, it's actually a nice little hospital. I believe Nason and Johnstown hospitals are both affiliated with Duke, by the way.

 

[bwh05]

I don't know enough about the economics of the systems to know if consolidation is good or bad for the consumer.

 

[CrazyPaco]

Tyrone is alive and well because of UPMC. Many doctors who did not want to be absorbed into the UPMC system opened up shop at Tyrone. Like Nason (Roaring Spring), on the other side of Altoona, it's actually a nice little hospital. I believe Nason and Johnstown hospitals are both affiliated with Duke, by the way.

Tyrone's ability to pull itself out of bankruptcy was, frankly, amazing, but that happened 6 years ago, several years before Altoona merged into UPMC, so I wouldn't say it is completely related, but certainly it has been an alternative to UPMC for physicians ruffled by the cultural changes it brought. Tyrone's CEO (Steve Gildea) did a hell of a job, because it was really on the brink of closing, and the turn around is remarkable. But the reality is that a 25 bed hospital can't stand alone in the healthcare ecosystem today...it still needs a partner, as does almost every small hospital. It will be interesting to see if still becomes part of Penn State Health because PSU's strategy may need to change now that the Pinnacle merger is dead, and I don't see how it really fits into what PSU was trying to pull off. Frankly, it is too small. It may make sense to fold it under Mt. Nittany if they fully absorb that. But if you just add for the sake of adding, you can end up like AHERF.

Nason was going to merge with Altoona but that was scuttled with the UPMC merger. Nason is also tiny, and it is now one of 60+ hospitals owned by Tennessee-based for-profit LifePoint (which has a licensing deal to use Duke's name). It was folded under Conemaugh's managment which is also owned by LifePoint. Frankly, it is lucky to still be up or not just converted into an outpatient facility, but it isn't impossible to think that is a future that awaits it.

Altoona got really lucky getting UPMC, because it could have gone with Conemaugh as a hub, and there is a pretty big difference what is going on between the two as far the investments made in the two facilities. Same with Hamot and St. Vincent.

Update...PS Health and Tyrone decided not to merge (prior to Pinnacle merger being ended).

 

[CrazyPaco]

UPMC's reimbursements to unaffiliated hospitals is atrocious.
Their insurance plans suck....high deductibles....they don't want to cover any procedures.
Don't buy their insurance...caveat emptor.
I KNOW...I have their insurance...I've worked in healthcare for 30+ yrs....it's a joke.
Blame it on Obama Care if you want.
H2P

Yet it is the highest ranked in Pennsylvania.

I don't know enough about the economics of the systems to know if consolidation is good or bad for the consumer.

Well, I can tell you it started in Western PA as a reaction of the hospitals in the Pittsburgh region banding together to fight the Highmark insurance monopoly...and I mean it a monopoly where it was like 90+%. Insurance monopolies don't exist everywhere. Consolidation has happened elsewhere across the country because that is just the way the industry is going... particularly driven by the slashing of reimbursements for care from medicare and commercial insurances. Small independent hospitals have no leverage to negotiate rates with insurers or suppliers, and they have no (or negative) operating margins to recruit faculty or invest in new equipment. They slowly bleed to death. Independent hospitals are very much a dying breed. There are hardly any left in PA, and many that are left aren't long for the world. Consolidation can be bad or good, and depends on the market, but it is the way of the world now. You read stories about what has been happening with some of these small hospitals bought up by the huge for-profits and some of it is, frankly, not good at all. Then there are some good stories too. I've said this before, there is a reason hospitals soliciting and picking UPMC as a partner over multiple other in-state and out-of-state choices, and for Pitt as a university with an academic medical center, you better believe it is fantastic that you have a national leader in this business. If you want to think of it as an athletic conference analogy, UPMC has been building a Power 5 conference, while most academic medical centers are playing in the MAC. Everyone in academic health is copying, or trying to copy, some aspect of UPMC's model.

 

[CrazyPaco]

Actually my UPMC coverage is pretty good, I'm satified. I guess it is just what the company is
will to pay for.

Well its been ranked #1 in PA, or near #1, for years now by multiple ranking services including US News and JD Power.
http://www.jdpower.com/ratings/study/Member-Health-Plan-Study-by-Region/903ENG/Pennsylvania/1740

There is a snowball effect as UPMC is growing because it is leveraging its expertise in clinical care, big data technology, research on personalized medicine to constantly refine operational efficiencies. It's why it is one of the only insurance companies in the nation that didn't take a bath on its initial ACA plans and isn't drastically ratcheting up the price this year: because it knew better how to price it in year one because of the internal data and analysis it had.

 

[pittdan77]

Tyrone's ability to pull itself out of bankruptcy was, frankly, amazing, but that happened 6 years ago, several years before Altoona merged into UPMC, so I wouldn't say it is completely related, but certainly it has been an alternative to UPMC for physicians ruffled by the cultural changes it brought. Tyrone's CEO (Steve Gildea) did a hell of a job, because it was really on the brink of closing, and the turn around is remarkable. But the reality is that a 25 bed hospital can't stand alone in the healthcare ecosystem today...it still needs a partner, as does almost every small hospital. It will be interesting to see if still becomes part of Penn State Health because PSU's strategy may need to change now that the Pinnacle merger is dead, and I don't see how it really fits into what PSU was trying to pull off. Frankly, it is too small. It may make sense to fold it under Mt. Nittany if they fully absorb that. But if you just add for the sake of adding, you can end up like AHERF.

Nason was going to merge with Altoona but that was scuttled with the UPMC merger. Nason is also tiny, and it is now one of 60+ hospitals owned by Tennessee-based for-profit LifePoint (which has a licensing deal to use Duke's name). It was folded under Conemaugh's managment which is also owned by LifePoint. Frankly, it is lucky to still be up or not just converted into an outpatient facility, but it isn't impossible to think that is a future that awaits it.

Altoona got really lucky getting UPMC, because it could have gone with Conemaugh as a hub, and there is a pretty big difference what is going on between the two as far the investments made in the two facilities. Same with Hamot and St. Vincent.

My comment had more to do with the new "resurgence" of Tyrone. My father-in-law was down there for rehab before UPMC and they were operating as something of a rehab hospital. No idea what's going to come of this but when I suffered a sever injury a few years ago, having access to everything in Pittsburgh was absolutely a life saver. It's amazing to see specialists making rounds at Altoona that are based in Pittsburgh. They fly these guys up to do that. I guess it's cheaper than trying to hire more specialists.