Natural Gas Boom in Pennsylvania Actually a Bust for Some Hospitals

Although the natural gas industry has found an economic boom in central Pennsylvania, some hospitals are shouldering the burden of its indirect costs, according to a Williamsport Sun Gazette report.

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Natural gas exploration and hydraulic fracturing, a controversial way of extracting natural gas, has increased heavily in Pennsylvania’s Marcellus Shale, which is a large rock formation that spans Appalachia.

For Jersey Shore (Pa.) Hospital, a 25-bed critical access hospital, the energy development actually led to the hospital posting its first operating loss since 2007. “I don’t think it’s a sign of the economy. I think it’s the influx of the gas industry and those who lack insurance,” Jersey Shore President CEO Carey Plummer told the Sun Gazette.

The hospital recorded an operating loss of $770,000, mostly due to an increase in care for the area’s uninsured. Mr. Plummer said many of the big gas companies in the area provide health insurance for their employees, but many of the gas companies’ subcontractors do not, which has led to an influx of uninsured patients receiving care at Jersey Shore, according to the report.

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