UMass Memorial gets green light on PT affiliation

UMass Memorial Health Care will be able to move forward with plans to affiliate with national PT services provider ATI Physical Therapy Services as the Health Policy Commission will not conduct a formal review of the deal.

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By Emily Micucci

The Massachusetts Health Policy Commission will not conduct a formal review of a proposed joint venture between UMass Memorial Health Care and ATI Physical Therapy Services, clearing the way for the Worcester-based UMass Memorial to finalize an affiliation with the national provider.

The announcement came in a statement from HPC spokesman Matthew Kitsos Wednesday. Kitsos said in an email the two organizations will jointly operate physical therapy and occupational therapy clinics in Central Massachusetts, but that UMass Memorial’s referring physicians will maintain patient choice when it comes to physical and occupational therapy providers. Kitsos said joint venture sites will not operate as hospital outpatient sites or charge facility fees, two factors that can drive up healthcare costs for consumers.

The decision follows a preliminary, 30-day review by the HPC after the plans were filed with the agency in the fall. The HPC has the authority under state law to review healthcare transactions with the potential to affect cost and access to health care. If a transaction may increase the cost of healthcare in Massachusetts or reduce access to care, a formal cost and market impact review is conducted.

"We are pleased the Health Policy Commission will not initiate a Cost and Market Impact Review of our proposed partnership with ATI Physical Therapy allowing us to move forward with this venture. Physical therapy services help our patients maintain healthy and active lives. The demand for services in Central Mass. is significant. This partnership will help us address the increasing demands alongside a partner that is a proven developer and operator of physical therapy clinics across the United States," UMass Memorial spokesman Anthony Berry said in a statement Wednesday.

Illinois-based ATI, a multi-state for-profit company, has 30 clinics in Massachusetts, and has grown rapidly here since acquiring two physical therapy practices in December 2015.

UMass Memorial has sought to expand its net by affiliating with specialty providers in the last few years. For example, the organization is now providing urgent care services through a new affiliation with CareWell Urgent Care.