On July 1, 2004, Gnaden Huetten Memorial Hospital and Palmerton Hospital entered into an historic decision combining their organizations to create an integrated health care system. The creation of the Blue Mountain Health System ended an era of competition and started a new era of cooperation between Carbon County's two hospitals. While competition in most industries is generally good for the consumer, competition in health care tends to result in duplication of services and in higher costs. Palmerton and Gnaden Huetten hospitals faced the same challenges as hospitals across the nation straining under the burden of increasing labor costs, higher malpractice insurance premiums, increasing costs of pharmaceuticals and supplies, and declining reimbursement. By working together, the hospitals of the Blue Mountain Health System have been able to continue to provide quality, compassionate healthcare to the residents of Carbon County and the surrounding areas.