UMass Memorial CEO: New ventures likely, acquisitions possible

UMass Memorial Health Care CEO Eric Dickson

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By Emily Micucci

In an interview discussing year-end financial results last week, UMass Memorial Health Care CEO Eric Dickson said the system is planning more affiliations in the year ahead in order to maximize patient volume, and larger acquisitions may even be possible.

With a joint contracting agreement with ATI Physical Therapy, a national provider of physical therapy services, pending before the state, Dickson said similar deals with other providers to expand services are likely.

UMass Memorial has sought to expand its reach in Central Massachusetts through such affiliations in the last few years, rather than actually purchasing other organizations.

But with the looming arrival of Boston-based Steward Health Care through its planned acquisition of the Central Massachusetts Independent Physician Association, Dickson said all options for growth are on the table.

There are no major acquisitions planned now, but Dickson said “that could change overnight as opportunities become apparent.”

Steward’s arrival through the CMIPA acquisition brings the state’s second-largest provider into a region that is dominated by UMass Memorial Health Care. There are about 200 doctors in the CMIPA physician group, and Steward Health Care Network will handle payer contracting for those doctors following the acquisition.

The Massachusetts Health Policy Commission gave the acquisition the green light this month, and it is expected to move forward as planned.

UMass Memorial has 600 doctors within its managed care network, and has a number of clinical affiliations in place with other hospitals in Central Massachusetts. Dickson noted the system must now work to maintain those relationships by adding value to its partner organizations, primarily through operational efficiencies.

“We’re just laser focused on executing our strategic plan,” Dickson said.