Massachusetts Commission to Review Partners Healthcare, Hallmark Health Deal

The Massachusetts Health Policy Commission will review a proposed affiliation between Partners HealthCare in Boston and Hallmark Health System in Melrose, Mass., according to a report from The Boston Globe.

David Seltz, the commission's executive director, issued a statement saying the increased market concentration that would result from the deal "raises competitive concerns" about price increases and negotiating power with health insurers, according to the report. If the transaction goes through, Partners will run 10 acute-care hospitals.

In October, Partners and Hallmark signed a memorandum of understanding to create a new regional affiliation centered on coordinated care and population health. The transaction would affect four Massachusetts hospitals: Lawrence Memorial Hospital of Medford and Melrose-Wakefield Hospital in Melrose, both of which are part of Hallmark, as well as Union Hospital in Lynn and Salem Hospital, both of which are part of Partners' North Shore Medical Center.

Financial terms of the affiliation were not disclosed. Partners said most investments would be put into health IT, primary care physician recruitment and capital improvements at Melrose-Wakefield Hospital and Salem Hospital.

Although the policy commission's staff is already starting the cost and market impact review, commissioners will vote Wednesday to continue the inquiry, according to the report.

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