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What Could UnityPoint Merger Mean For Patients?

Kristin McHugh

What could a UnityPoint merger with Sanford Health mean for patients and prices?

One expert said while mergers like this one don’t often cause major price spikes, it also probably won’t make that trip to the doctor much cheaper.

Ashley Swanson co-authored a study on hospital mergers last year for the Wharton School at the University of Pennsylvania.

“I can’t say definitively whether it will hurt in higher output prices, the prices to insure. I have pretty good confidence, based on the results of my own research that it’s not going to dramatically improve costs," said Swanson. 

Swanson’s study found target hospitals generally save an average of $176,000 on annual costs in mergers, or about 1.5 percent of annual revenues. The evidence is mixed for acquiring hospitals. 

Swanson said the multi-state nature of the proposed union between Iowa-based UnityPoint and South Dakota-based Sanford actually works in favor of not seeing dramatic price increases implemented post-merger. Generally, she said the biggest increases are seen when hospitals within the same geographic footprint (about 5 to 25 miles apart) decide to merge. 

UnityPoint Health declined an interview request for this story, but in a letter to patients, UnityPoint President CEO Kevin Vermeer says the proposed partnership with Sanford “opens new doors” for patients and communities.

"For example, their excellent research across breast cancer and diabetes could help more people go from getting well to living well. It could make all the difference: one more mother able to show up at herdaughter’s wedding, one more man with stable blood sugar able to celebrate his grandson’s birthday," Vermeer wrote. 

Vermeer also said physicians, hospitals and insurance coverage wouldn't change under the merger. 

If approved by federal regulators, the newly merged group would become one of the 15 largest nonprofit health systems in the country, with more than $11 billion in annual revenue. The deal is expected to close by the end of the year. 

Locally, UnityPoint Health operates Methodist, Proctor and Pekin Hospital, as well as Methodist College. 

Copyright 2021 WCBU. To see more, visit WCBU.

Tim Shelley is the News Director at WCBU Peoria Public Radio.