Case Details

Year Initiated/Committed


Year Resolved


Settlement Amount

$100,000 costs


U.S. District Court for the Middle District of Pennsylvania

Docket Number


Lead State


Participating States



Geisinger Health System Foundation; Bloomsburg Health System; Bloomsburg Hospital

Case Description

State alleged that the the acquisition of Bloomsburg Hospital by Geisinger Heath System Foundation may substantially lessen or eliminate competition in the region. Geisinger is a non-profit parent of four hospitals, including its flagship Geisinger Medical Center which is located only 10 miles from Bloomsburg Hospital. It also owns the Geisinger Clinic, a multi-specialty physician group practice with more than 900 primary care and specialty physicians and the Geisinger Heath Plan. Geisinger is one of the largest providers of inpatient acute-care hospital services in northeastern Pennsylvania. The state was concerned that Geisinger would be able to raise prices for hospital and physician services to Columbia County residents and their health plans. The parties reached a settlement under which Geisinger agreed to continue to operate Bloomsburg Hospital as an acute care hospital for eight years, six years longer than the term agreed to by the parties. The agreement also requires that all physicans with privileges at Bloomsburg Hospital will keep their privileges. The original merger agreement with the Bloomsburg Board only protected certain physicians. Geisinger also agreed to negotiate and contract with health plans for Bloomsburg Hospital separately from Geisinger Medical Center. Bloomsburg Hospital historically had lower rates than Geisinger Medical Center. By contracting separately, Bloomsburg’s rates will be comparable to other community hospitals, not a large tertiary hospital like Geisinger.