The CEOs of Boston-based Beth Israel Deaconess Medical Center and Burlington, Mass.-based Lahey Health said their proposed merger would allow them to become active competitors in the state's healthcare market and would help both institutions weather potential legislative changes to national health policy and shrinking reimbursements, according to The Boston Globe.
Kevin Tabb, MD, CEO of Beth Israel and Howard Grant, MD, JD, CEO of Lahey Health told The Boston Globe the combined health system would "pull patients from other higher-cost competitors and that each percentage point of market share they gain would cut $18 million from state medical spending," according to the report.
Both institutions are still negotiating the specifics of the agreement they made in January. Together, the merged entity would be the second-largest health system in the state by revenue, operating eight hospitals and maintaining $4.5 billion in annual revenue.
State officials have yet to approve the transaction.
Both CEOs said they would continue to fight for their proposed merger despite potential policy changes.
"We feel a real sense of urgency not because we are in trouble now but because we look at what's coming nationally...Both of us are pretty clear that now is the time to make that move," said Dr. Tabb.