Economics 101: Competition is good. Competition forces businesses to improve their services and prices to decrease. When there is only one service being offered, it is easy to capitalize and set whatever price is desired.

So why did the approval of the new Geisinger Health System, which will be located in Gray's Woods, create such uproar among university officials who contend its existence will single-handedly cause a tuition increase?

The new location for Geisinger, which was approved by Patton Township supervisors Jan. 25, would include mostly outpatient care.

Since then Penn State officials, specifically Gary Schultz, Penn State senior vice president of finance and business, has said the new hospital would undoubtedly increase tuition in the future because Mount Nittany Medical Center would be forced to increase the price of its services.

The connection is that most Penn State employees, faculty and their dependents -- about 30,000 individuals according to the associate vice president for finance and business Daniel Sieminski -- receive health insurance through Mount Nittany Medical Center and Penn State pays for these medical benefits.

Schultz said once Geisinger opens its doors, Mount Nittany Medical Center would have to increase the costs of its services.

To compensate, Schultz said the university would be forced to increase tuition rates to counteract increased spending on employee health benefits.

Sieminski said the university only has two ways to deal with any increased cost: increased funding or increased tuition.

Understandably so, of course, as tuition has increased about 40 percent over the past four years, and Penn State is already the most expensive in-state school in the country. But it seems as though officials are using this excuse to defend their position against competition for Mount Nittany Medical Center.

Even if Schultz's presumption were accurate, there is a community beyond University Park which will benefit from the addition of another facility. And the university should not have the authority to dictate of what the local community consists.

Competition is good for the local community and its residents. Options will be available and services and prices will inevitably improve. For the amount of people here, students and residents, an alternative service is a must.

It is difficult to understand the economics of the situation as well. How can competition, specifically in this case, cause prices to increase?

Penn State seems to have found yet another scapegoat for increasing tuition. Rather than actually have to explain why tuition is so high, officials can use this as an excuse.

It is heartening to see how concerned the university is with what is best for the people -- especially when it has such a powerful influence on the lives of over 40,000 students.