Boston-based Steward Health Care commented publicly for the first time against the proposed merger between Boston-based Beth Israel Deaconess Medical Center, Burlington, Mass.-based Lahey Health and several other hospitals, claiming the deal would give the merged system too much market leverage, according to The Boston Globe.
John Polanowicz, COO of Steward Health Care, told the publication the proposed merger would threaten the viability of Steward's nine hospitals in Massachusetts, as well as other community hospitals statewide.
"We think mergers like this without an appropriate level of scrutiny put not only ours but many community hospitals at risk," he said.
Mr. Polanowicz and three other executives of various healthcare organizations and hospital systems in Massachusetts signed a letter to the state's healthcare watchdog organization, the Health Policy Commission, June 12 that raised concerns about the proposed transaction. The letter reportedly argued the proposed merger would widen disparities between wealthier and poorer communities, and noted the 13 hospitals composing the new system — Beth Israel Lahey Health — already treat a smaller share of low-income patients than hospitals belonging to Steward or Burlington, Mass.-based Wellforce health system.
A Health Policy Commission spokesperson confirmed to The Boston Globe the commission had received the letter. The watchdog group is expected to release its analysis of the deal, which already received one key approval from the state in February, by mid-July.
David Passafaro, senior vice president for external affairs at Boston-based New England Baptist Hospital — one of the 13 hospitals involved in the deal — told the publication each of the 13 hospitals has submitted details about their plan to the necessary state and federal agencies.
"The regulatory review process has been robust and thorough — in fact, even more robust and thorough than the process Wellforce and Steward went through to grow their systems," he said in a statement.