Briefing: Breaking with Atrius Health
Reliant Medical Group of Worcester and Southboro Medical Group will withdraw from the Atrius Health Network and pursue a merger, the multispecialty medical group practices announced last week. The union would create a regional organization with a strong presence throughout Central Massachusetts and MetroWest, with more than 300 physicians serving about 300,000 patients.
Reliant, formerly the Fallon Clinic, has annual revenue of about $430 million and employs about 1,500 across 20 locations. Southboro, founded in 1972, has more than 450 employees at offices in Southborough, Framingham, Milford and Westborough.
What’s Atrius and what’s behind the split?
Atrius is a network of six medical groups in Central and Eastern Massachusetts. The groups had been in the middle of “an intensive strategic planning process for several months,” leading to a recommendation by the Atrius board to merge all six groups, according to a statement from Reliant. But “after a careful and comprehensive review of a revised merger proposal, both Reliant and Southboro have chosen to opt out” of Atrius and pursue a merger on their own, the statement read.
How familiar are Reliant and Southboro with each other?
Very familiar. The two medical groups have worked with each other independently and as part of Atrius, Reliant said. Earlier this year, Reliant opened a new medical office at Southboro's main medical center at 24 Newton St. in Southborough. In addition, Southboro Medical sends a specialty physician to a Reliant site in Central Massachusetts to serve patients.
How certain is a merger, and when would it take place?
“We are actively pursuing a merger,” Reliant said in response to a follow-up question from the WBJ. But it's unclear how long it will take to complete the withdrawal from Atrius and merge the two organizations. In its announcement, Reliant said it and Southboro will execute the formal withdrawal from Atrius over the next several months. Reliant added that the move won't impact patient care for either group.
How much of a factor does health care reform play in this decision?
Health care reform is requiring all health-care providers to provide high-quality — yet cost-efficient — care. In some cases, that will lead to mergers and acquisitions. Reliant believes that merging the two organizations will allow them to be more effective than if they were to remain alone.
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