Dive Brief:
- Boston Medical Center and Tufts Medical Center executives are discussing specific terms to move ahead in the merger that would combine the two Boston hospitals into an integrated health system.
- Executives reportedly told employees this week that a merger would allow the hospitals to strengthen their positions as lower-cost, high-quality options among the other Boston hospitals.
- According to the Boston Globe, the hospitals will look at consolidating facilities, but have not detailed what type of consolidations might take place. Executives report that they are "analyzing each hospital's finances, marketing, strategy, and technology, and they have hired consultants to help with the merger talks." They did say they would continue relationships with both of the hospitals' affiliated medical schools.
Dive Insight:
If a deal is reached, the potential merger will have to be approved by the state's Health Policy Commission, which evaluates the impact of mergers on healthcare costs.
The commission made headlines last year over its role in preventing three proposed acquisitions by Partners HealthCare. After the commission determined that the moves would increase spending by tens of millions per year, sparking opposition, Partners dropped one bid and put another on hold.
As the Globe notes, however, the commission did sign off on a different deal last year allowing Lahey Health to acquire Winchester Hospital.