Why 4 local governments are asking Prisma Health to ‘slow down’ Providence purchase
Four local governments in the Midlands have come together to ask Prisma Health to “slow down” in its acquisition of three more Columbia-area hospitals, including Providence.
Fairfield, Kershaw, and Lexington county councils joined with Columbia City Council to put out a statement on Wednesday asking the Greenville-based health system to slow its purchase of KershawHealth and two Providence hospitals until local governments can be reassured about the move’s impact on local health care.
Prisma Health announced last week it would be purchasing Providence Health from LifePoint Health, which would give Prisma control of five of the six largest hospitals in the Columbia area. The move would also give Prisma control of KershawHealth in Camden and a Providence-run stand-alone emergency room in Fairfield County.
“We are understandably concerned about the future of health care in each of our communities,” said Julian Burns, chairman of Kershaw County Council, in the news release. “We want to start a conversation with Prisma Health and LifePoint to better understand what they have planned for our communities.”
The statement claims local governments were left unaware of the planned purchase until it was publicly announced last week, and are still unsure what the change will mean for patients and the many people who work in health care in the Midlands.
In response, Prisma Health spokeswoman Tammie Epps said the company has and continues to meet with governmental officials about the proposed acquisition.
“We look forward to sharing how this will improve patient care and the health of the communities we serve,” Epps said.
She pointed out that Prisma Health provides $640 million in unreimbursed care annually. Prisma also treats 77% of all Richland County Medicaid patients and half of all Lexington County Medicaid patients, as well as 85% of all charity cases from Richland County and 45% of charity cases from Lexington County.
But local government leaders aren’t alone. Several Richland County legislators also expressed surprise and concern about the sale last week, arguing it could lead to layoffs and negatively impact the quality of care available in the community.
“Our citizens deserve to know the details of this sale and have input into the future of health care in our communities,” said Neil Robinson, chairman of Fairfield County Council, in a statement.
One Lexington County Council member said the sale should be reviewed by the Federal Trade Commission. Lexington County Council Chairman Scott Whetstone said federal intervention may be needed “to ensure there will still be healthy competition among Midlands health care providers and citizens will be free to choose where they go for important health care services.”
The only major competitor to Prisma Health left in the Midlands will be Lexington Medical Center. Last week, Tod Augsburger, Lexington Medical president and CEO, responded to Prisma Health’s plans to purchase Providence by saying that “as they become a larger corporate conglomerate, we believe it will adversely affect access, quality, and care for patients and families across the Midlands.”
Kershaw County officials also worry they would lose out on a $1 million annual payment from LifePoint that supports the county’s EMS services.
“We look forward to members of our senior leadership team meeting with Prisma Health leadership to determine how this acquisition is in the long term interests of public health and health care in Columbia and the Midlands,” said Columbia Mayor Steve Benjamin.
Richland County was not included in Wednesday’s statement. Reached by The State, Richland County Council Chairman Paul Livingston said he would support local governments getting more information from Prisma Health about the purchase. Livingston said he was unsure what the effects on Providence would be if the sale did not go through.
“My concern would be what is the impact of the sale versus doing nothing,” Livingston said. “What are the benefits of not doing it?”
Prisma Health was formed in November 2017 after Midlands-based Palmetto Health and the Greenville Health System merged to create the largest health system in South Carolina with 18 hospitals.
Providence was Columbia’s Catholic hospital for 77 years until LifePoint Health of Tennessee purchased it in 2015.
Prisma also has been adding other local health care offices recently, including several smaller, family practices. In October, Prisma purchased Columbia Heart, adding its 15 cardiologists to the company.
At the same time, Prisma Health has been shedding employees. Since October, Prisma Health has laid off more than 500 workers in an effort to “streamline the organization,” management said at the time.
This story was originally published March 11, 2020 at 4:10 PM.
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