`family' Values Make County Politics Worthless 
The Racketeer Influenced And Corrupt Organizations Act (rico) At Last Enabled 
Federal Prosecutors To Arrest And Convict Mob Kingpins, Rather Than Small Fry.

Aging Roof Gives Way At Crestwood High 
As Predicted By Some 
Parents And Experts On 
Roofing, 16-year Old Roof 
Atop The School Caved 
In, Flooding Science Wing

By JERRY LYNOTT; Times Leader Staff Writer
 Saturday, January 18, 1997 &nbsp;&nbsp;&nbsp;&nbsp;Page: 1A 





PLAINS TWP. -- In a merger labeled inevitable, Geisinger Health System and
Penn State's Hershey Medical Center unveiled plans Friday to form a new system
to compete in the nation's health care revolution. &nbsp;&nbsp;&nbsp; 
 The new physician-led system, to be known as Penn State Geisinger Health
System, will provide access to 1,000 physicians through its combined network
of 77 clinics to people in approximately three-fourths of the state. &nbsp;&nbsp;&nbsp; Dr. Arthur Sherwood, senior vice president of clinical operations for
Geisinger's eastern region, said the merger will make the new system " tougher
and ready to compete" against health care maintenance organizations that have
become the trend in the health care industry. &nbsp;&nbsp;&nbsp; 
 "We should be able to offer better care and better quality at a lower cost
and bring increased value to the patients," said Sherwood at Geisinger Wyoming
Valley Medical Center in Plains Township. &nbsp;&nbsp;&nbsp; 
 As a not-for-profit system run by physicians, the system can concentrate on
meeting the needs of its patients and improving its facilities, Sherwood said. &nbsp;&nbsp;&nbsp; 
 Sherwood and approximately 100 administration and staff members crowded
into a conference room at the hospital to watch the 35-minute satellite
broadcast of the merger announcement from State College and Danville. &nbsp;&nbsp;&nbsp; 
 Afterward, some hospital employees said they supported the merger, but
wanted to know more specifics about how it would affect them. &nbsp;&nbsp;&nbsp; 
 Sherwood said he does not foresee any layoffs among the 1,300 employees in
Geisinger's eastern district which includes the hospital. &nbsp;&nbsp;&nbsp; 
 "In the near future, most health care in Pennsylvania will be provided by
four or five large systems as organizations consolidate for more
effectiveness," said Dr. Stuart Heydt, chief executive officer of
Danville-based Geisinger. "This merger ensures that a Pennsylvania system, led
by physicians and dedicated to quality care, will be one of the survivors." &nbsp;&nbsp;&nbsp; 
 The merger, agreed to by the board of directors of Geisinger and the
trustees of Penn State, is expected to be completed by July 1. &nbsp;&nbsp;&nbsp; 
 The two systems have combined annual revenues of more than $936 million,
more than 13,000 employees and $48 million in research grants, with $44.4
million of that total attributed to Hershey Medical Center. &nbsp;&nbsp;&nbsp; 
 Geisinger operates three hospitals and provided outpatient care at 70
offices in 31 counties. Geisinger also operates the almost 200,000-member
Geisinger Health Plan, which will be available to the entire area covered by
the new system. &nbsp;&nbsp;&nbsp; 
 The Milton S. Hershey Medical Center is made up of Penn State's College of
Medicine, University Hospital and Penn State University Children's Hospital. &nbsp;&nbsp;&nbsp; 
 The merger is not expected to come up against any state or federal
resistance, said Graham B. Spanier, president of Penn State University.
Officials from both systems began meeting last year and accelerated merger
talks over the past four or five months, he said. &nbsp;&nbsp;&nbsp; 
 "We really haven't uncovered any stumbling blocks," Spanier said. &nbsp;&nbsp;&nbsp; 
 Spanier described Geisinger and Hershey as "two very healthy financial
organizations" that have cut costs while providing quality health care. &nbsp;&nbsp;&nbsp; 
 Consolidation and further cost cutting will save an additional $105 million
in three years. No facilities will be closed. &nbsp;&nbsp;&nbsp; 
 Under the terms of the merger, ownership and operation of Penn State's
College of Medicine will remain with Penn State. The College of Medicine's
education and research departments will be closely affiliated with the new
system. &nbsp;&nbsp;&nbsp; 
 Sherwood reiterated points made by officials from both Geisinger and
Hershey during the teleconference. Both systems share contiguous territory
covering 40 counties in the state, he said. Both are physician-run systems.
And both, Sherwood said, share a common mission "to improve the health of the
population through a balanced program of research, education and patient
care." &nbsp;&nbsp;&nbsp;

Geisinger, Psu Unite Health Systems Penn State Geisinger Health System Will Offer 77 Clinics And 1,000 Physicians In The State