N.H. at­tor­ney gen­eral ob­jects to CMC Health­care, Dart­mouth link

Modern Healthcare - - Late News -

The New Hamp­shire at­tor­ney gen­eral ob­jected to a pro­posed af­fil­i­a­tion agree­ment be­tween Catholic Med­i­cal Cen­ter Health­care Sys­tem, Manch­ester, N.H., and Dart­mouth-Hitch­cock Health, Le­banon, N.H. In his re­port, At­tor­ney Gen­eral Michael De­laney said he ob­jected to the pro­posed trans­ac­tion be­cause the ar­range­ment would re­sult in “a pro­found change to gov­er­nance struc­ture of the CMC Char­i­ties and di­min­ish the fidu­ciary du­ties” of the CMC board. De­laney said the two health­care sys­tems also had not demon­strated ad­e­quate due dili­gence in de­ter­min­ing the ef­fects of the trans­ac­tion on the costs, and that there were in­suf­fi­cient safe­guards in place to en­sure that the cal­cu­la­tion of post-af­fil­i­a­tion sur­pluses are not sub­ject to ma­nip­u­la­tion or abuse. A joint state­ment from Thomas Co­lac­chio, pres­i­dent of Dart­mouth-Hitch­cock, and Alyson Pit­man Giles, pres­i­dent and CEO of Catholic Med­i­cal Cen­ter, said, “We are sur­prised, dis­ap­pointed and we strongly dis­agree with the at­tor­ney gen­eral.” It also said the two “will ac­tively con­sider our op­tions to go be­fore a judge to have this re­viewed by a court.”

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