AREA HOSPITALS' PLIGHT WORSENING
Problems could hamper health care local economies

Problems plaguing local hospitals, including Charles Cole Memorial Hospital in Coudersport and Elk Regional Health Center in St. Marys, could result in reduced health care services and some serious economic blows to area communities.

That's the backdrop as plans come together for a Health Care Forum to be held in the coming weeks, tentatively in Coudersport.

Financial problems are worsening, and more people are postponing or going without care. This can be traced to reduced health insurance reimbursement, medical liability issues and a rising number of people who don't have any insurance and cannot afford self-pay.

A study by the Hospital & Health System Assn. of Pa. found that Cole generates about $55 million in annual economic benefit to the region; Elk generates approximately $53 million.

Topping the list of benefits are jobs. Cole, the largest employer in Potter County, pays about $25 million in salaries, while Elk pays roughly $23.6 million.

Also included in the economic benefit formula is a hospital's unreimbursed cost of providing care to patients who can't afford it. Clinics, health screenings, prenatal-maternity programs, scholarships and community outreach are also part of the formula.

Although area hospitals compete for "business," they cooperate on certain costcutting measures. For instance, they've formed an alliance to purchase insurance and are cooperating on technological advancements that can be shared.

Meanwhile, the report notes the state's population is becoming increasingly older and Medicare underreimbursements to hospitals, combined with a shrinking commercial insurance base, have weakened hospital finances.

Charles Cole Hospital CEO Ed Pitchford sees trouble on the horizon.

"Long-term systemic changes are needed to preserve access to health care in this part of the state," Pitchford said. "This is both a federal and state issue and will take cooperation from both."

Local health care officials will sponsor the forum, featuring lawmakers and those involved in the state's health care associations. Senate President Pro Tempore Joe Scarnati, R-Brockway, and state Rep. Martin Causer, RTurtlepoint, are among those who will be invited.

Scarnati acknowledged that rural hospitals are having trouble attracting doctors, including high-end surgeons and specialists, due in large part to medical malpractice problems. Scarnati also said the merger between Independence Blue Cross and Highmark Inc. could aggravate the problem.

"That merger will create an insurance company that will have more than 60 percent of the market in Pennsylvania," Scarnati said. "The next largest one is at six percent. They can dictate the reimbursement rates and premiums."