The Massachusetts Health Policy Commission, an independent state agency, declared its intent to formally review Boston-based Partners HealthCare's proposed merger with Boston-based Massachusetts Eye and Ear July 7, the Boston Business Journal reports.
A spokesperson for HPC told the Boston Business Journal the agency's initial review revealed the merger may "result in meaningful impacts on healthcare costs and the competitive market" and "raises important questions for examination and public consideration."
The commission will present findings from its initial review to the full board July 26 to receive authorization to formally study the merger.
If approved, the commission would have between 74 days and 104 days to complete a cost and market impact review of the transaction. The review period may be extended, however, if the hospitals request additional time to submit the necessary documents. It is the seventh time the commission has requested to conduct a cost and market impact review of a healthcare deal, according to the report.
Following the review, the commission may either choose to allow the acquisition to proceed or refer the deal to the Massachusetts attorney general for further action.
A Partners spokesperson told the Boston Business Journal HPC's decision "is disappointing, but certainly not surprising. We are confident this review will demonstrate that we can strengthen the clinical and scientific relationships between our organizations and make Mass. Eye and Ear services accessible to a broader population of patients — further improving the quality of life for thousands of individuals and families."
The organizations declared plans to unite in January, and signed a definitive agreement May 30. The deal is worth approximately $185 million, based on Massachusetts Eye and Ear's net patient service revenue, according to the report.