BOSTON — The HPC has not yet received notice relating to Rural Healthcare Group’s (RHG) proposed acquisition of Steward Medical Group and Steward Health Care Network but expects to receive notice and review this proposed transaction.
The HPC’s regulatory role requires that when a notice of material change is submitted, details of the proposal will be reviewed by the HPC to examine potential impacts on health care costs, quality, access, and equity. It will be important to understand how the goals of this proposal will relate to other proposed transactions involving the Steward Health Care hospitals operating in Massachusetts.
“The dissolution and bankruptcy of Steward Health Care has been an unprecedented disruption for communities, patients, and health care workers in Massachusetts,” said HPC Executive Director David Seltz. “As we move forward past this crisis, the HPC’s rigorous market oversight role is essential to making important information transparent and protecting the residents of the Commonwealth.”
The sale cannot be completed until after the HPC’s review and any concurrent review by state or federal antitrust authorities.
Information on Market Oversight and Proposed Transaction Review Process:
- After notices of material change are filed and all required information has been provided about the sale, the HPC will have 30 days to assess potential impacts of the transaction. If the sale is anticipated to have a significant impact on health care costs and market functioning, the HPC can initiate a full review in the form of a Cost and Market Impact Review (CMIR).
- More information on the HPC’s role in market oversight, including timelines for review and details on Material Change Notices (MCNs) and Cost and Market Impact Reviews (CMIRs), can be found in this overview on the HPC’s website.
- The HPC’s market oversight and monitoring activities are designed to strengthen market functioning and health system transparency, with the goal of encouraging a more value-based health care market. Changes by health care providers, including consolidations and alignments of provider organizations, have been shown to impact the performance of our health care system in delivering high-quality, affordable, and accessible care. The HPC monitors and reports on the current structure of health care providers in the Commonwealth, as well as on the potential impacts of proposed changes.
