News

Penn State Health, PinnacleHealth go to court over blocked merger

Written by Ben Allen, General Assignment Reporter | Apr 8, 2016 1:29 PM
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(Harrisburg) -- Lawyers for the Federal Trade Commission are scheduled to head to court today to try to stop a blockbuster merger between two health care systems in the midstate.

The FTC has sued to block Penn State Health and PinnacleHealth from joining together.

It argues the merger would reduce competition and lead to higher prices.

Studies have shown hospital consolidations generally mean increased costs to get health care, though much of the information dates back to before the Affordable Care Act.

The health systems say they want to combine their operations to better coordinate care and play to each organization's strengths.

Using the most recent data, combining Penn State Health and PinnacleHealth would result in an organization with more than two-point-seven billion dollars in annual revenue.

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