Tag: hospital Merger

West Virginia AG Told to Release Hospital Merger Documents

A judge has ordered West Virginia’s attorney general to release 89 documents about the merger of two hospitals in Huntington.

Attorney General Patrick Morrisey’s office has four days to appeal the ruling that he release about one-quarter of the documents he has withheld from public view relating to his investigation into the hospital merger.

In his order Friday, Kanawha County Circuit Judge Tod Kaufman wrote the public has a right to know about the “hotly-contested merger” of Cabell Huntington Hospital and St. Mary’s Medical Center.

Morrisey has fought for more than a year to shield the documents from the public.

Kaufman’s ruling follows his behind-closed-doors review of 349 documents that Morrisey has refused to release.

State Approves Merger of Two Huntington Hospitals

The West Virginia attorney general has approved the merger of two hospitals in Huntington.

Local news outlets report that West Virginia Attorney General Patrick Morrisey signed off on the merger of Cabell Huntington Hospital and St. Mary’s Medical Center on Wednesday.

Morrisey concurred with the West Virginia Health Care Authority’s decision to approve the merger.

The state legislature had passed a law earlier this year exempting the hospital merger from state and federal antitrust laws if the agency approved the merger.

Officials from Cabell Huntington and St. Mary’s applauded the agency’s decision.

Public Comments on Hospitals' Merger Overwhelmingly Negative

None of the 18 letters sent to the West Virginia Attorney General’s office recently were in favor of a proposal to merge two Huntington hospitals.

News outlets report that during the 10-day comment period, which ended April 18, all of the comments, including one from the Federal Trade Commission, expressed concerns over Cabell Huntington Hospital’s proposed acquisition of St. Mary’s Medical Center.

The comments argued the merger would create a monopoly, thereby eliminating competition in Huntington and leading to higher prices.

The West Virginia Health Care Authority and Attorney General Patrick Morrisey are now tasked with weighing the potential loss of competition with the benefits that hospital officials say the merger will bring to the community.

The authority and Morrisey have until June 8 to issue a written decision.

Comments Taken on Proposed Hospital Takeover

  The public can comment on Cabell Huntington Hospital’s proposed acquisition of St. Mary’s Medical Center.

Attorney General Patrick Morrisey says the public comment period runs through April 18. The attorney general’s office will review the comments in conjunction with the state Health Care Authority.

Last month Gov. Earl Ray Tomblin signed a bill to exempt the acquisition from state and federal antitrust laws if a cooperative agreement is approved by the Health Care Authority and Morrisey’s office.

The Federal Trade Commission in November opposed the merger, saying it would raise costs and lower health care quality by creating a monopoly.

In November 2014, Cabell Huntington agreed to assume control of St. Mary’s after the Pallottine Missionary Sisters ended their sponsorship of the hospital after 90 years.

Legislators Defend Cabell-Huntington St. Mary's Merger

Cabell Huntington Hospital wants to buy St. Mary’s Medical Center. The Herald-Dispatch reports that the West Virginia Health Care Authority has granted a certificate of need, meaning the authority deems the combination of the two Huntington hospitals is needed and consistent with the state’s health care goals.
The two hospitals separately are the largest employers in Huntington, with nearly 5,000 employees between them. They are also each among the top ten largest employers in the state.

But the Federal Trade Commission has blocked the acquisition, citing concerns that the merger would create a medical monopoly, raising prices and lowering care quality.

West Virginia lawmakers disagree, saying the merger benefits West Virginians. They’ve passed legislation aimed at bringing consumer regulation back into state hands. That bill now sits on Governor Tomblin’s desk. Appalachia Health News’ Kara Lofton sat down with  Senator Robert Plymale and Brian Gallagher, counsel for Marshall Health, to discuss what the merger might mean for West Virginia.

Appalachia Health News is a project of West Virginia Public Broadcasting, with support from the Benedum Foundation.

Hospital Merger Expert Urges Caution with Cabell-Huntington Aquisition of St. Mary's Medical Center

Historically, hospital mergers have meant higher healthcare costs for patients. So when Cabell-Huntington Hospital announced it would buy St. Mary’s Medical Center over a year ago, a federal consumer protection agency stepped in to prevent the consolidation. Now, West Virginia legislation that made it to Governor Earl Ray Tomblin’ desk Saturday could remove barriers to the merger and set a precedent for hospitals in similar standoffs around the country.

Appalachia Health News’ Kara Lofton talked with Marketplace’s Dan Gorenstein and Leemore Dafny, director of Health Enterprise Management at Northwestern University about the merger in a recent Q&A. Gorenstein and Dafny’s main concerns are that the merger will raise healthcare costs (by as much as 15 percent according to Dafny) and lower healthcare quality. 

Advocates of the acquisition, including Cabell-Huntington’s CEO and vice president, defend the merger saying they are committed to “restraining the costs of health care to the fullest extent practicable,” and that the merger will not affect quality of care.

Appalachia Health News is a project of West Virginia Public Broadcasting, with support from the Benedum Foundation.

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