The Massachusetts Health Policy Commission will conduct a cost and market impact study of Winchester (Mass.) Hospital's proposed affiliation with Lahey Health in Burlington, Mass., according to a report from The Boston Globe.
David Seltz, the commission's executive director, issued a statement saying the transaction raises the potential for Lahey to leverage for higher prices through joint contracting with Winchester Hospital, according to the report. A timeline for the completion of the cost and market impact study was not disclosed.
In June, Lahey signed a letter of intent to affiliate with Winchester, and the two organizations reached a formal agreement in September. Under the agreement, which is not a full-scale merger or acquisition, leaders from the 229-bed Winchester will join Lahey's board of trustees, and the hospital will become an affiliate of the system as part of a "shared governance" model. Lahey and Winchester will also work closely to build networks within primary care, women's health, emergency medicine and cancer care.
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