Press Release
Hospital Merger Gets Final Approval
By Steven Fletcher
Staff Writer
The state's Public Health Council on Wednesday signed off on the
planned affiliation or merger between Lahey Clinic and Northeast
Health System, provided the new nonprofit corporation - Lahey
Health Systems - keeps Northeast's Addison Gilbert Hospital
services at current levels for a minimum of three years and
conducts a community health needs assessment for going forward.
The Public Health Council's approval was the last
that Lahey and Northeast needed before the non-profits join in
their partnership.
Northeast Chief Executive Officer Ken Hanover said
Attorney General Martha Coakley's office signed off on the
affiliation with no stipulations. The Federal Trade Commission, he
added, chose not to review the proposal, leaving it up to state
approvals.
With approvals in place, the two nonprofits are
expected to complete the affiliation on May 1.
The affiliation gives the two health care
corporations the green light to go forward, and will create a $1.5
billion, integrated regional health system along an axis from
Gloucester to Burlington. The new corporation is to be governed by
a new Lahey Health Systems board with equal representation from
Northeast and Lahey.
While the merger has received support from most of
that axis, Cape Ann residents and officials have pushed for a
guarantee that Addison Gilbert will continue to operate as a
community hospital with essential services, including an emergency
room.
Northeast and Lahey, according to the Department
of Public Health's recommendation approved by the health council in
Boston on Wednesday, revised their initial three-year guarantee for
the hospital, and made it a binding condition of the merger.
The Public Health Council made the three-year
minimum guarantee and the community health needs assessment binding
conditions of the affiliation.
"Staff finds that the revised commitment binding
the Lahey Health System to maintain Addison Gilbert for three years
and to undertake a comprehensive community health needs assessment
represents a reasonable response to the comments of interested
parties related to the future of Addison Gilbert," the Department
of Public Health recommendation states.
The Department of Health recommendation indicated
the condition is appropriate "given the rapidly changing
marketplace, the current marginal financial viability of Addison
Gilbert and the precedent of commitments made in recent transfers
of ownership in the commonwealth."
Lahey President Dr. Howard Grant said the
affiliation will allow the newly formed nonprofit to invest in its
community hospitals.
Grant said Lahey Health Systems would work toward
bringing additional services to Addison Gilbert based on the
community needs assessment. Lahey Health, he added, has no plans to
close or reduce services at Addison Gilbert.
"There have been no discussions on either part of
Lahey or Northeast Health Systems related to reducing services in
Addison Gilbert Hospital," Grant said. "We would be thrilled if
over time we would be able to add services in the community."
Expanding services at Addison Gilbert, Grant said,
will take full engagement from residents and physicians in the Cape
Ann area.
If Lahey Health systems is going to invest in the
community, Grant said it will have to do it in collaboration with
medical groups like the Cape Ann Medical Center.
Steven Fletcher may be contacted at 1-978-283-7000
x3455, or sfletcher@gloucestertimes.com. Follow him on Twitter at
@stevengdt.
