The announcement of the Greenville Health System-Palmetto Health merger has raised more than a few eyebrows, prompting experts and concerned citizens alike to analyze the pros and cons of the deal.
💰 The merger would give the new company:
- 1.2 million patients a year
- $3.9 billion in annual revenue
- more than 28,000 employees
👍 The partnership is a win for South Carolina, says GHS, as it will allow for more research dollars, technology and programs, as well as top talent + subspecialists. GHS’s dreams of providing organ transplants could come true, without having to ship patients to Charlotte or Atlanta for treatment.
💰 On the flipside, a 2012 study (by the Robert Wood Johnson Foundation) found that hospital mergers generally cause a rise in health care costs.
Why? According to Northwestern University, “when they merge together, they are a big animal and they have the game and can ask the insurance companies for more money.” The people who buy insurance may have to pay more for that feedback loop.
👍 However, GHS says that won’t happen, because they’re creating a new company that will only handle strategic and financial matters, and each company will remain separate. (Meaning, bargaining with insurance companies won’t be affected.)
✅ The deal is now being reviewed by the Federal Trade Commission, but both hospitals say they’re confident it will be approved.
See a map of where GHS-Palmetto Health facilities are here.
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