This week, Rep. Cindy Axne (IA-03) sent a letter to the CEOs of Trinity Health and MercyOne health systems following news that Trinity Health will acquire the facilities and assets of Iowa-based Mercy One Health System. The transaction is expected to be completed summer 2022.
In the letter, Rep. Axne asks Trinity Health to confirm reporting that while the company expects financial “efficiencies” as a result of the merger, patients should not expect lower costs. The letter encourages the health care providers to use any cost savings Trinity Health should realize as the sole parent of MercyOne to lower patient costs and invest in patient care.
“MercyOne health care facilities are a presence in communities across Iowa. As you know, its 16 medical centers, 27 affiliate organizations, and over 420 care sites handle over 3.3 million patient visits across Iowa each year,” Rep. Axne wrote. “During this transition, I urge you to make sure that integrating MercyOne into Trinity Health does not come at the expense of Iowans’ access to personalized care from providers who they know and trust…. I encourage Trinity Health to use any cost savings it should realize as the sole parent of MercyOne to improve patient care, lower patient costs, and make health care more accessible for underserved Iowans.”
The letter also seeks information from Trinity Health regarding how it plans to ensure patients served by MercyOne will have their private medical information kept secure and will be protected from surprise bills, as well as ensuring rural Iowa health facilities will remain open.
Read the full text of the letter here:
Dear Mr. Slubowski and Mr. Ritz:
I noted with interest your recent announcement that Trinity Health will become the sole parent of MercyOne, and I write seeking additional information to ensure that Iowa patients served by MercyOne will benefit from this transaction and will continue to have access to essential health care services in their communities.
MercyOne health care facilities are a presence in communities across Iowa. As you know, its 16 medical centers, 27 affiliate organizations, and over 420 care sites handle over 3.3 million patient visits across Iowa each year. According to your joint release announcing the agreement, Trinity health “will bring unified strategies and operations to MercyOne’s care sites, including one set of operations.” During this transition, I urge you to make sure that integrating MercyOne into Trinity Health does not come at the expense of Iowans’ access to personalized care from providers who they know and trust.
Additionally, in an April 19th article regarding the acquisition, the Des Moines Register reported: “The integration is expected to create long-term financial "efficiencies" for both health systems, though patients should not expect lower costs as a result of the merger, Slubowski said.” I encourage Trinity Health to use any cost savings it should realize as the sole parent of MercyOne to improve patient care, lower patient costs, and make health care more accessible for underserved Iowans.
Right now, Iowans’ budgets are being squeezed by rising prices, and they can ill afford to see prices for essential health care services also rise as a consequence of this acquisition. According to a Medicare Payment Advisory Commission (MedPAC) review of published research on hospital consolidation, the “preponderance of evidence suggests that hospital consolidation leads to higher prices.” One specific study found that prices at hospitals purchased by an out-of-market hospital system rose approximately 17% more than for unacquired hospitals. With these considerations in mind, and on behalf of the Iowans that I serve who will be impacted by this acquisition, I respectfully request replies to the following:
- Is the above statement regarding financial efficiencies accurate?
- If so, and MercyOne patients should not expect lower costs due to the acquisition, how does Trinity Health intend to use projected financial efficiencies, and how will this benefit patients?
- As Trinity Health works to integrate MercyOne’s records and create a single electronic health record:
- How does it intend to ensure that patients’ private medical information is protected?
- How does it intend to prevent billing errors and ensure compliance with consumer protections, including the surprise billing protections included in the No Surprises Act?
- Since 2005, 98 rural hospitals nationwide have been forced to close.[5] What plans does Trinity Health have in place to make sure Iowans are not hurt by facility closures, including cutbacks to necessary health services?
As you work to finalize the agreement and complete regulatory filings, I believe it is critical that patients across Iowa have confidence that MercyOne will remain an integral provider of a wide range of health services. To ensure consideration of your responses prior to completion of the merger, which you expect this summer, please provide answers no later than June 15th, 2022. Should you have any questions, please contact Will Binger at Will.Binger@mail.house.gov or Robert Krebs at Robert.Krebs@mail.house.gov on my staff.
Sincerely,
Original source can be found here.
