The Health Policy Commission, Massachusetts' healthcare watchdog, released a report stating Boston-based Partners HealthCare's proposed acquisition of Massachusetts Eye and Ear, also in Boston, will increase healthcare spending by $20.8 million to $61.2 million per year, according to the Boston Business Journal.
The report suggests Massachusetts Eye and Ear would be able to use the Partners negotiations to its advantage to achieve higher reimbursement rates from insurers. However, the organizations wouldn't necessarily see improvements in quality of care or an expansion of services, the report states.
The Health Policy Commission previously said it would refer the case to the state attorney general's office and the Massachusetts Department of Public Health. The DPH is reportedly reviewing the transaction, but has yet to issue a final decision.
Partners and Massachusetts Eye and Ear have 30 days to officially respond to the Health Policy Commission's report before the state issues a final ruling.
A spokesperson for Partners told the Boston Business Journal Nov. 1, "We will review the details contained within the HPC's prelim report, and work with them to address any concerns they have."
"We remain steadfast in our belief that for Mass. Eye and Ear to join a system is what’s best for all patients," a spokesperson for Massachusetts Eye and Ear told the publication. "Given Mass. Eye and Ear's long history of clinical and research collaboration with Partners' hospitals, joining the Partners system is the best path forward for Mass. Eye and Ear to continue to offer the highest quality care and find cures."
The organizations announced their intent to merge in January and signed an agreement in May. Under the agreement, Massachusetts Eye and Ear will remain an independent hospital with its own leadership team, while Partners would become the sole corporate owners of the hospital, the report states.