On Thursday, Suffolk Superior Court Judge Janet L. Sanders rejected an agreement for Partners HealthCare to acquire South Shore Hospital in Weymouth and two Hallmark Health System hospitals, in Medford and Melrose, Boston Globe reports. Outlined in a 48-page decision, Sanders found the settlement was to complex for the court to properly enforce and did not provide sufficient protections to keep Partners’ market power in check. According to Sander, the acquisition would “cement Partners’ already strong position in the health care market and give it the ability, because of this market muscle, to exact higher prices from insurers for the services its providers render.”
The controversial settlement has been met with severe criticism from insurers, competitors, antitrust specialists and consumer advocates that argue the provider already has a monopoly on the state’s provider landscape. Partners Healthcare is the state’s largest healthcare system whose network comprises of 10 hospitals, including Brigham and Women’s and Massachusetts General hospitals in Boston, and more than 6,000 physicians.
Parners can still move forward with the acquisitions but will face the threat of litigation. In a statement after the ruling, Attorney General Maura Heale stated, “Our office is prepared to litigate to block this transaction if Partners chooses to move forward. We remain committed to tackling the challenge of controlling health care costs while also promoting quality and access (Boston Globe/McCluskey /01/29/15).”
Despite the criticism that Partners charges some of the state’s highest cost for medical care, Partners HealthCare believes the acquisition will set price caps to prevent raising the cost of medical care. If the settlement is approved, Partners will become one of the most highest regulated healthcare systems in the nation (Boston Globe/Lueng/10/25/14).
