Beth Israel, Jordan Hospital Merger Won't Increase Costs, Commission Says

Boston-based Beth Israel Deaconess Medical Center's proposed acquisition of Jordan Health Systems, parent company of Jordan Hospital in Plymouth, Mass., isn't likely to drive up healthcare costs in Plymouth and Barnstable counties, the Massachusetts Health Policy Commission has found, according to a report from The Boston Globe.

Although the commission can't stop a merger, it can launch cost and market impact studies of all hospital acquisitions. The panel's preliminary review of the proposed BIDMC and Jordan merger focused on whether the transaction would drive up the cost of care for patients or lead to the use of higher-paid healthcare providers, according to the report. Commissioners said there is no need for further cost and market impact review.

Earlier this week, the Massachusetts Department of Public Health held a public hearing about the merger. Members of Local 1199 of the Service Employees International Union have expressed concern about the acquisition moving all decision-making power from the local community to the BIDMC board.

The medical center and health system signed a definitive agreement last month to combine their organizations. BIDMC and Jordan announced a potential deal in January and have since completed due diligence. Under the deal, Jordan will become part of the BIDMC system, making BIDMC the sole corporate entity. BIDMC has a similar structure for its hospitals in Milton, Mass., and Needham, Mass. The transaction needs state and federal approval.

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Massachusetts to Hold Hearing on Jordan, Beth Israel Merger 
Beth Israel Deaconess, Jordan Hospital Sign Definitive Merger Papers
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