Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Massachusetts Attorney General expresses concerns over Partners Healthcare hospital merger, (Jan 28, 2015)
Organizations Mentioned:Partners Healthcare System, Inc.
By Linda O’Brien, J.D., LL.M.
In a notice of position filed on January 26, Massachusetts Attorney General Maura Healey expressed concerns over a proposed consent agreement that would allow Partners HealthCare System to acquire three community hospitals. The notice, filed in the Suffolk Superior Court, informed the court that the attorney general is prepared to fight to block the merger, if the court were to reject the consent agreement.
In pursuing its acquisition of South Shore Hospital in Weymouth and Hallmark Health System’s hospitals in Medford and Melrose, Partners HealthCare System, the largest health care system in the state, stated that the expansion would allow it to provide more coordinated, lower-cost care to patients north and south of Boston.
In a prior court hearing, the court asked for the opinion of Attorney General-Elect Healey on the proposed agreement. Having taken office, Attorney General Healey submitted the notice of position to the court.
As part of the notice, the Attorney General explained that she greatly respects the work the office did in arriving at the agreement with Partners HealthCare. She noted, however, that the court has been presented with additional information, including the input of dozens of insurers, providers, the Health Policy Commission, and many other stakeholders that have weighed in with comments, expressing concerns about the agreement’s ability to control costs over time.
In the notice, Attorney General Healey expressed her own concerns about the efficacy of parts of the consent judgment, including its duration and the insurers’ position on component contracting. She made clear to the court that if the agreement were approved, her office would vigorously enforce it. If rejected, however, Attorney General Healey would move to litigate and attempt to block the merger in court.
“One of the greatest challenges for our Commonwealth is controlling health costs while promoting quality and access, and I evaluated this issue with that goal in mind,” said Healey, in a January 26 statement. “Should the Court decline to enter the settlement, my office will exercise its right to void the agreement with Partners. I anticipate we then would litigate to enjoin Partners’ proposed acquisition of South Shore Hospital.”
Companies: Partners Healthcare System, Inc.
News: Antitrust MassachusettsNews