Dive Brief:
- Partners HealthCare System has struck a deal with Massachusetts Attorney General Martha Coakley allowing the system to acquire South Shore Hospital, but reducing its negotiating power significantly.
- The Massachusetts Health Policy Commission had previously blocked the deal, arguing that it would raise prices in the region.
- Under the terms of the new agreement, however, Partners faces several limitations; for example, it may not contract with affiliate physician groups not part of its owned hospitals for 10 years, it may not grow physician networks for five years and it isn't permitted to acquire other hospitals in eastern Massachusetts for the next seven years.
Dive Insight:
With so many limits placed its deal-making capabilities, it's easy to wonder why Partners felt the acquisition was worth making. But apparently, its competitors aren't taking the settlement lightly, which suggests that they think Partners came out ahead. For example, leaders at Beth Israel Deaconess Medical Center are upset that the agreement was filed without a prior public review. If other hospitals want to challenge the agreement, however, they'll have their chance, as the settlement still must be finalized in court. At the hearing, those who object to the AG's deal will be able to make arguments against it and present evidence on the impact the new Partners will have on the regional marketplace.