The Huntsville Hospital Health System is set to purchase Crestwood Medical Center in a $450 million transaction.
Per the agreement between Huntsville Hospital Health System (HHHS) and Community Health Systems Inc., HHHS will take ownership of Crestwood's medical center, freestanding emergency department in Harvest, 180-bed acute care hospital and other associated outpatient services.
On Wednesday, State Sen. Larry Stutts (R-Tuscumbia), a former medical professional, gave his opinion on the deal on Mobile radio FM Talk 106.5.
"I think it's overall bad for a variety of reasons," Stutts said. "You know, one hospital system calls all the shots, and it's not necessarily good. I understand the resources that they bring. And everybody doesn't know, the hospital that I practiced in when I retired is affiliated with Huntsville Hospital, and they brought some tremendous resources in, some equipment in."
"But the bottom line is, they also set the pay scale, and we're looking at Crestwood and Huntsville. The nurses at Crestwood are paid more than the nurses at Huntsville Hospital."
Stutts told show host Jeff Poor the higher level of pay among Crestwood nurses is "probably not going to continue" following the acquisition.
"So when you take anybody's choices out of where they go as a patient, where they work for physicians, you've only got one hospital system now that you can practice in taking away those options and consolidating the market like that. In the long run, I don't think it is a good thing," Stutts reiterated.
The legislator also spoke about the chilling effect Alabama's current certificate of need law has on competition in the medical industry.
"You kind of mentioned that when you get control of the market of a big area, anybody that says they want to build, we'll just pick Huntsville, since that's the one you brought up, anybody that wanted to build a new healthcare facility in the Huntsville market, Huntsville Hospital can object to their CON and basically block them completely out of the market."
"Now they can object with multiple sites. Crestwood can object. Huntsville Hospital can object. Madison can object. And so you just surround an area with people that have the ability to keep anybody else from coming into the area," Stutts added.
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