Boston-based Partners HealthCare President and CEO David Torchiana, MD, said the institution has halted merger discussions with Wellesley, Mass.-based insurer Harvard Pilgrim Health Care, The Boston Globe reports.
Here are four things to know:
1. Partners and Harvard Pilgrim, the state's second-largest insurer, began discussions about a potential deal in May, and have spent several months discussing a deal.
2. In a conversation with executives from The Boston Globe, Dr. Torchiana said Nov. 15 the organizations are not ruling out a future combination, but said negotiations as they stood were becoming too complicated. He also noted the deal would be subject to extensive regulatory review.
"Now isn't the right time to try to push something like that ahead. I don't think either organization is sure that it's something that's actually possible to achieve ... in this environment right now where there's such intense scrutiny of every move," he said, adding that both institutions were also unsure "whether or not … we're functionally organized to be able to pull it off."
3. The deal comes as several other organizations in New England seek to merge, effectively fighting Partners for market share in the state. One such combination includes the proposed merger of Boston-based Beth Israel Deaconess Medical Center, Burlington, Mass.-based Lahey Health and three other healthcare organizations. Partners is also pursuing a deal with Providence, R.I.-based Care New England.
4. Dr. Torchiana told The Boston Globe the abrupt exit of Harvard Pilgrim's former CEO in June did not contribute to the decision to halt negotiations, instead stating "the complexity of [the deal] was really what gradually crept up on us."
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