Part­ners, Har­vard Pil­grim put merger talks on hold

Modern Healthcare - - Regional News -

Part­ners Health­Care and Har­vard Pil­grim Health Care are tabling their planned merger af­ter ex­ec­u­tives re­port­edly felt the deal was get­ting too com­pli­cated.

Bos­ton-based Part­ners, Mas­sachu- setts’ dom­i­nant health sys­tem, and Welles­ley, Mass.-based Har­vard Pil­grim, the state’s sec­ond-largest health plan, an­nounced in May they were con­sid­er­ing a pos­si­ble merger. The not-for­profit com­pa­nies on Nov. 16 con­firmed the merger talks were on hold.

Part­ners CEO Dr. David Torchi­ana told the Bos­ton Globe the deal was get­ting too com­pli­cated and was bound to face reg­u­la­tory scru­tiny. He said the an­nounce­ment doesn’t rule out the pos­si­bil­ity of a fu­ture deal.

Part­ners’ ex­ist­ing health plan, Neigh­bor­hood Health Plan, re­ported an op­er­at­ing loss of $5 mil­lion in this year’s third quar­ter, com­pared with an op­er­at­ing gain of $34 mil­lion in the same 2017 pe­riod. The plan’s pre­mium rev­enue dropped 64% in the quar­ter. Part­ners is re­brand­ing the plan as Al­lWays Health Part­ners start­ing Jan. 1.

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