Merger Takes Big Step to Fulfillment

The deal involving Lahey Health, the Beth Israel Deaconess system, three independent hospitals, plus a number of physician practices received a favorable report from the Department of Public Health last week. DPH’s sign-off should guide the state’s Public Health Council, which is expected to take up the large merger in April.

In July, the Health Policy Commission is expected to issue its full cost and market impact review, exploring how the merger will affect overall healthcare costs in the state. If the HPC finds a transaction is detrimental to the state’s overall healthcare system it can refer its report to the Attorney General’s office. 

The deal at issue would create a new system consisting of the current Beth Israel Deaconess Medical Center, Beth Israel Deaconess Hospital – Needham, Beth Israel Deaconess Hospital – Plymouth, and Beth Israel Deaconess Hospital – Milton, along with the Lahey-owned Lahey Hospital & Medical Center, Beverly Hospital, and Winchester Hospital. Also included are the independent Anna Jaques Hospital, New England Baptist Hospital, and Mount Auburn Hospital. Under the proposed deal, the new system would control the following contracting entities: Beth Israel Deaconess Care Organization (BIDCO), the Lahey Clinical Performance Network and Lahey Clinical Performance ACO. Mount Auburn Cambridge Independent Practice Association, which currently contracts independently, would be brought under the umbrella of the new system.