SMETHPORT – PA State Sen. Cris Dush (R-25) issued the following statement regarding the inability of Kaleida Health to complete an agreement that would have transferred ownership of the former Bradford Regional Medical Center campus to Lake Erie College of Osteopathic Medicine (LECOM):
“The situation facing Bradford is unacceptable, particularly when you look at the promises and expectations that accompanied Kaleida Health’s entry into our community and the significant reduction in life-saving healthcare services that have occurred over time—most notably the closing of Bradford Regional’s emergency room.
“The people of Bradford and surrounding communities deserve a sustainable, long term healthcare system. Unfortunately, Kaleida Health is not protecting the public’s interest for the original charitable purposes associated with the former hospital. They are apparently attempting to restrict competition by potentially engaging in ‘refusal to deal as a local monopoly’ as defined in Section 2 of the Sherman Antitrust Act, through the application of ‘extreme barriers to entry.’
“I am also deeply concerned by reports of Kaleida Health pressing an unreasonable 10-year, non-compete clause on all attempted purchasers of Bradford Regional Medical Center. This brand of ‘forced service market segmentation’ naturally results in ‘market division’ which also clearly violates the Sherman Anti-Trust Act.
“Given the potential implications for preserving healthcare competition and rural healthcare access throughout the Bradford region, these issues warrant appropriate review under applicable state and federal law, including federal anti-trust law.
“I also intend to ask the Pennsylvania Attorney General’s Office to fully review the original transaction that resulted in Kaleida Health’s control of Bradford Regional Medical Center and to examine whether the commitments and charitable purposes associated with that transaction have been appropriately maintained.
“Accordingly, I am requesting appropriate divisions of the attorney general’s office review all materials and documents (linked and listed below) to determine whether further investigation is warranted:
- The original charitable purpose of Bradford Hospital, including the 1885 Articles of Incorporation and subsequent amendments, and whether those documents establish continuing restrictions or obligations concerning charitable assets;
- The 2018 merger and related transaction documents, including the treatment of Bradford Hospital’s charitable assets and any provisions concerning the Bradford community;
- The current ownership, control and disposition of any remaining charitable assets or interests associated with Bradford Hospital;
- Whether any charitable assets or interests should continue to be used for a charitable purpose benefiting the Bradford community, including whether a local charitable organization or foundation may be an appropriate successor recipient;
- The reported non-compete requirement associated with the potential sale of the former hospital facility, including whether the restriction could raise concerns under Pennsylvania or federal antitrust law;
- Whether any additional oversight, investigation, court proceedings or corrective action is warranted to protect charitable assets, preserve the charitable purposes for which they were established, and protect competition and access to health-care services in the Bradford area.
“Regardless of any pending or future investigations, I will continue moving forward with Bradford area community leaders, McKean County officials, healthcare organizations, and local, state and federal partners to identify innovative and affordable healthcare solutions our citizens and patients expect and deserve. Of course, none of these outcomes are possible without first establishing a foundation built on maximum transparency and accountability.”
CONTACT: Ty McCauslin, 717-787-7084