UMass Memorial Health Care, the region’s largest health system, said it is exploring a potential merger between its two hospitals in North Central Massachusetts, with the announcement coming after one of those hospitals experienced $1.2 million in losses last year.
Debora Spano, a UMass Memorial spokeswoman, said Friday that the health system is exploring a merger between UMass Memorial – HealthAlliance Hospital in Leominster and UMass Memorial – Clinton Hospital in Clinton that would capitalize on growth at HealthAlliance Hospital and on Clinton Hospital’s convenient access to care and high rates of patient satisfaction. Employees at Clinton Hospital were notified of the potential merger on Thursday.
“We anticipate that the potential merger of two UMass Memorial hospitals will ensure longevity and expansion opportunities for each organization, including emergency department, inpatient and outpatient volume at HealthAlliance Hospital and Clinton Hospital,” Spano said in a statement.
The merger would join one of UMass Memorial’s most successful hospitals in terms of patient satisfaction, Clinton Hospital, with one of its perennially financially best performing hospitals. A recent report by the Massachusetts Center for Health Information and Analysis (CHIA) found that Clinton Hospital lost $1,229,000 in the 2015 fiscal year, while HealthAlliance had $7 million in profits. Clinton Hospital had the biggest losses in the region and a negative 4.6 percent total margin. The most recent CHIA reports indicate that Clinton Hospital is operating at a loss for the current fiscal year as well.
