UMass Memorial exploring Clinton, HealthAlliance merger

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

Write a Comment

By Laura Finaldi

UMass Memorial Health Care, the largest Central Massachusetts health system, announced last month it is exploring a merger between its two hospitals in North Central Massachusetts: UMass Memorial - Clinton Hospital in Clinton and UMass Memorial - HealthAlliance Hospital in Leominster.

“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,” UMass spokeswoman Debora Spano said.

The possible merger was announced shortly after a report from the Massachusetts Center for Health Information and Analysis found Clinton Hospital lost $1.2 million in the 2015 fiscal year, while HealthAlliance posted $7 million in profits. In July, CHIA reported that Clinton Hospital lost $0.8 million in the first three months of 2016 while HealthAlliance posted a $3.1 million first quarter profit.

Consolidated efforts

Lynn Nicholas, president and CEO of the Massachusetts Hospital Association, said changes in health care have made it increasingly difficult for smaller institutions to go at it alone.

Merging together and consolidating under a larger umbrella can give smaller hospitals better access to capital, more leverage in recruitment – especially when it comes to specialists – and better alignment of care, Nicholas said.

“Health care is becoming so complex that it is a certainly to a smaller organization's advantage to be able to pull resources from and share management talent with another entity,” she said.

Nationwide trend

The possibility of consolidation echoes similar strategies taken by other hospitals and health systems across the country, said Nicholas. Framingham Union Hospital and Leonard Morse Hospital in Natick found success by merging together as MetroWest Medical Center, which is owned by Tenet Healthcare, and North Shore Medical Center, which includes Salem Hospital and Union Hospital, is part of Partners HealthCare System.

“Whenever I've talked to hospital CEOs and senior staff members in organizations that have done that, they tell me after the fact it was the best move for the community and staff,” Nicholas said. “They're able to focus more on local needs and the unique needs of that community, but they have help, if you will, from a larger organization, so it's an asset.”

Spano said UMass Memorial expects to have more information on the potential merger in October.