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Heywood Healthcare, one of the last independent community healthcare systems in Central Massachusetts, has agreed in principle to join the UMass Memorial Health system, seeking to become part of the network with facilities in Worcester, Marlborough, Leominster, Clinton and Southbridge.
UMass Memorial Health, which is based in Worcester and has $2.9 billion in annual revenue, has signed a non-binding letter of intent to fully explore affiliation options with Heywood Healthcare and its facilities in North Central Massachusetts, according to a press release put out by the two systems on Tuesday morning.
The proposed affiliation, which has been approved by both sides’ board of trustees, looks to bolster the available healthcare services in the region, with Heywood gaining increased access to capital resources for investing in technology, improved facilities and medical equipment.
Heywood, which has $150 million in annual revenues, has two main hospitals in its system: Heywood Hospital in Gardner with 134 beds and Athol Hospital with 25 beds. Heywood Healthcare also operates the Heywood Medical Group, the 86-bed Quabbin Retreat for mental health and substance abuse recovery in Petersham, and eight other satellite facilities across the region.
They would join the UMass Memorial system, with its largest facility the UMass Memorial Medical Center in Worcester, which has 842 beds.
“During the past two years, we have managed both the challenges of COVID-19 and an increasingly complex health care environment,” said Winfield Brown, president and CEO of Heywood Healthcare, in a press release. “In order to assure continued access to outstanding local health services, we must consider new strategic models that strengthen and enhance the viability of services for our community.”
The proposed affiliation is expected to take up to one year to complete, following a regulatory review and approval process. The proposed affiliation does not impact patient care services currently offered within Heywood’s system.
Heywood would be the latest hospital to join the UMass Memorial system, which last completed an affiliation in July, bringing Harrington Healthcare of Southbridge into the fold.
In the joint press release statement, UMass Memorial Health’s president of community hospitals, Doug Brown, said the Heywood affiliation was a way to improve the overall outlook of North Central Massachusetts, a region which has often struggled economically.
“We look forward to working with Heywood Healthcare through the due diligence process, to include a clear understanding of the health and economic landscape of the north central and north Quabbin communities,” said Brown. “We anticipate that, among other things, such an agreement will include a commitment to preserving local services and a significant investment outside the hospital walls in the Heywood community.”
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Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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