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Research & Reports

Searching in Market Access (2001)

Harrisburg | Pennsylvania | 2016 | Market Overview (Event Driven)

Harrisburg is the nexus of healthcare consolidation for the eastern half of Pennsylvania, and the proposed merger between market leaders PinnacleHealth and Penn State Hershey may determine how health systems throughout the broader region are aligned going forward. The Federal Trade Commission has blocked the merger, claiming that the new Penn State Health could exert undue influence within the Harrisburg market. The two health systems have challenged the decision, and the outcome will determine whether a new regional powerhouse is created or if existing players, such as Geisinger Health or AllSpire Health Partners, will court the components of the halted merger. Either way, eastern Pennsylvania is undergoing a realignment that has encouraged a tolerance for value-based contracts between health systems and payers, and the two segments are working more closely on developing narrow networks and ACOs.

Questions Answered in This Report:

  • Health systems are expanding beyond their traditional geographic territories, with Geisinger and WellSpan each acquiring hospitals in Harrisburg. The shift has prompted locally based PinnacleHealth and Penn State Hershey to court hospitals outside the market and encouraged their merger plans. What are the potential outcomes of the decision regarding merger between Penn State Hershey and PinnacleHealth? Which hospitals have PinnacleHealth and Penn State Hershey separately acquired? What are the health system dynamics in the broader eastern Pennsylvania region, and how are they affecting Harrisburg?

  • Physicians are a key in payment reform, and health systems are working to clinically integrate with local providers in order to manage population health and enter ACO agreements. Are physicians consolidating in this market? How is the physician landscape affecting payment reform? How is technology being used by physicians for payment reform?

  • Payers are shifting strategies in an effort to control costs How is Capital Blue Cross adapting to the exchanges, and what could be the MCO's strategy going forward? How could segment leader Highmark adapt for Harrisburg its strategies from other Pennsylvania regions? Who is offering value-based care contracts?

Scope:

Market Includes: Harrisburg, which includes the counties of Cumberland, Dauphin, Lebanon, Perry, and York

Primary Research: Analysis of Decision Resources Group data, Billian’s HealthDATA, local and state news and industry reports and interviews with local healthcare executives.