Clinton, HealthAlliance merger to proceed

Courtesy Photo The UMass Memorial HealthAlliance Hospital in Leominster could potentially merge with Clinton Hospital.

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By Emily Micucci

Plans to merge Clinton Hospital and Leominster-based HealthAlliance Hospital will proceed after the Massachusetts Health Policy Commission (HPC) has opted not to conduct a full cost and impact review on the plan.

In a notice to stakeholders last week, the HPC, the state healthcare watch dog agency, said it decided not to proceed with a cost and market impact review, following a preliminary review. Under the proposed transaction, Clinton would become a satellite location under HAH's hospital license and would continue to operate as a full-service hospital campus, according to the HPC.

The merger was announced over the summer by owner UMass Memorial Health Care, and the board of trustees voted to approve it in September. The healthcare system said a merger would “ensure longevity and expansion opportunities for each organization.”

HealthAlliance Hospital, which has 83 beds and campuses in Leominster and Fitchburg, is in a stronger position than Clinton; HealthAlliance posted a $5.2 million surplus in the first six months of the fiscal year ended June 30, while 41-bed Clinton lost $1.1 million.

A preliminary review by the Health Policy Commission was the first hurdle UMass Memorial had to pass in order to proceed, as the state agency reviews all hospital transactions that could potentially impact healthcare cost, access and quality in Massachusetts. The merger still requires approval from the Department of Public Health.

“We are very pleased the Health Policy Commission has completed its preliminary review and found it unnecessary to proceed with a full cost and market impact review. We now look to approval from the DPH for this merger, which will further improve and expand services to patients, allow for the sharing of best practices, reduce wait times for outpatient and emergency care, minimize duplication and reduce the overall cost of care in our communities,” UMass Memorial spokesman Anthony Berry said in a statement.