Officials Suggest Geisinger Health System, Touted by Obama as a Model, Cannot be Replicated in Urban Areas

Some Philadelphia healthcare officials are saying that Geisinger Health System, touted by President Obama as a model for the nation, wouldn’t be easy for them to replicate, according to a report by the Philadelphia Inquirer.

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The three-hospital system, based in rural Danville, Pa., population 4,450, and known for lower costs while maintaining high quality, has started offering group tours to the crowds of outside healthcare officials who want to study it.

But Philadelphia-based critics of the Geisinger model said the health system benefits from a relative lack of competition, a stable patient base and virtually complete integration, with 800 doctors on salary and its own health plan and pharmacy.

Even so, Medicare costs in Geisinger’s region averaged $6,790 per patient in 2006, placing it in the nation’s lowest fifth, while the Philadelphia region’s spending was in the top fifth, at $9,665 per patient.

Read the Philadelphia Inquirer’s report on Geisinger Health System.

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