Penn State and local hospital officials say competition from the newly approved Geisinger Health System facility could force Mount Nittany Medical Center to increase its rates -- which could potentially drive up Penn State's tuition.

"If the cost of employee benefits went up, tuition would be affected," said Gary Schultz, Penn State senior vice president of finance and business. "It could drive up tuition in the long run, if insurance rates were to increase."

Plans for the 52-acre site in Gray's Woods, which will include mostly outpatient care, were approved by the Patton Township supervisors last Wednesday, Ron McConnell, Altoona Regional Health System senior vice president, said.

Schultz said most Penn State employees receive health insurance through Mount Nittany Medical Center. Because of the partnership, the university could be forced to increase tuition rates to compensate for increased employee salaries if hospital fees increase after Geisinger comes to Patton Township, he said.

McConnell said that after construction is completed in 2008, the outpatient center of the new facility will be about the size of 80 percent of the entire Mount Nittany Medical Center.

Altoona has joined with Mount Nittany Medical Center and Penn State in opposition to the new clinic, McConnell said.

He said the Geisinger expansion is indicative of a nationwide trend of "cherry picking." This trend is characterized by a health care provider weakening and threatening local hospitals by moving into a community and expanding dramatically without regard to community needs, he said.

Patton Township Board of Supervisors members Elliot Abrams and Jeff Luck could not be reached for comment by press time yesterday.

Kim Aboud, public relations manager for Geisinger, said the company views the opposition to the new facility as a normal part of competition, which will actually decrease the cost of health care.

"Our hope is that we can work with competitors and find an area where we can collaborate," Aboud said.

The new facility will enable local residents to avoid traveling to Altoona, Dansville or other locations to receive quality health care, she said.

Geisinger has more than 60,000 patients and five clinics in Centre County, including three in State College, which will move to the new facility after its completion, she added.

Jonathan Dranov, Mount Nittany Medical Center's assistant chief of medical staff, said Geisinger has not told the truth concerning its intentions with the new facility.

The organization does not call the center a hospital but will offer almost all of the services available at a hospital and are choosing to provide only profitable services, Dranov said.

Hospitals lose money with inpatient care and make up that revenue through outpatient services. If Mount Nittany Medical Center's revenue is lost to the Geisinger facility, then overall costs will increase, Dranov said. He added he also believes the facility would affect Penn State by leading to tuition increases.

By taking away their revenues, Geisinger would deter community hospitals from their mission -- to care for anyone in need, whether they have health insurance or not, McConnell said. This mission leads hospitals to be open all day, all year, while the Geisinger clinic would be open only weekdays, he added.

Scott Young, president of the Mount Nittany Medical Center's chapter of the Service Employees International Union 1199, said there is a concern that the new facility will steal nurses and technical workers away by offering better hours and more vacation time. "Hopefully this won't negatively affect us as much as we think it might," he added. "But it probably will."