State frowns on Partners’ proposed deal
State officials are slamming the brakes on a proposed acquisition of Massachusetts Eye and Ear by Bay State health care giant Partners HealthCare, saying the combination would increase costs.
“The HPC conducted an initial review and identified the potential for the transaction to result in meaningful impacts on health care costs and the competitive market,” said Matthew Kitsos, a spokesman for the state’s Health Policy Commission. “Further, the addition of the state’s only eye, ear, nose, and throat specialty hospital to the Partners system raises important questions for examination and public consideration.”
In January, Partners and Mass Eye and Ear said the hospital had agreed to join the sprawling health care network that includes Massachusetts General Hospital and Brigham and Women’s Hospital. At the time, executives said the combination would give the hospital more resources for research and patient care. The agreement was formalized in May.
After an initial 30-day review that led to the HPC’s conclusions, the commission will now begin a second, more in-depth analysis of the transaction, looking at the impacts on costs and access. That review could take three to four months, and by law the transaction cannot close before then.
When the investigation is finished, the HPC can refer the case to the state Attorney General’s Office for possible legal action. The HPC has blocked past Partners acquisitions, including of South Shore Hospital and Hallmark Health.
In a statement, Partners spokesman Rich Copp denied the acquisition would lead to increased costs for patients.
“The HPC’s decision is disappointing, but certainly not surprising. We are confident this review will demonstrate that we can strengthen the clinical and scientific relations between our organizations,” Copp said. “This transaction will not have a significant impact on health care costs.”