BOSTON — The Massachusetts Health Policy Commission (HPC) has concluded review of Steward Health Care’s Massachusetts hospital sales approved by Judge Christopher Lopez at the September 4, 2024 sale hearing in U.S. bankruptcy court.
The sales reviewed by the HPC include: St. Elizabeth’s Medical Center in Brighton and Good Samaritan Medical Center in Brockton to Boston Medical Center; St. Anne’s Hospital in Fall River and Morton Hospital in Taunton to Lifespan Health System in Rhode Island; and Holy Family Hospital, which has campuses in Haverhill and Methuen, to Lawrence General Hospital.
The HPC’s preliminary review of these sales assessed potential impacts on health care costs, quality, access, and equity. Based on the findings of these data-driven reviews, and in order to maintain access to critical services and to provide greater stability to the health care market in Massachusetts, the HPC has elected not to proceed with further review in the form of a Cost and Market Impact Review (CMIR).
These transactions have also been subject to federal review, review by the offices of the Massachusetts and Rhode Island Attorneys General, and review by the Massachusetts Department of Public Health (DPH) through the Determination of Need Emergency Application process. All of these reviews have concluded and the parties may proceed toward their desired closing date of September 30, 2024.
While the proposed hospital transactions represent significant changes to the Massachusetts health care market, the HPC’s initial reviews did not uncover evidence that these transactions are likely to significantly increase health care spending or negatively impact market functioning.
To the contrary, HPC found that the proposed acquisitions offer a critically important opportunity to maintain access to services for the patients of these institutions while offering real opportunities to improve quality and stabilize the health care market.
The HPC expects to closely monitor cost, quality, access, and health equity trends at these hospitals over time, including through review of materials required to be provided to the Massachusetts Department of Public Health in connection with the parties’ Determination of Need approvals.
The HPC’s review of the sale of the Stewardship physician network to Brady Health Buyer, an affiliate of Rural Healthcare Group and subsidiary of Kinderhook Industries, remains open and ongoing.
Findings from the HPC review of Steward Health Care’s Massachusetts hospital sales will be presented at the next HPC Board Meeting on Thursday, October 10, 2024. A livestream of that meeting will be available on the HPC’s website. More information on the HPC’s market oversight authority and transaction review process can be found here.
