MA – Beth Israel, Lahey Health to Merge
Beth Israel Deaconess Medical Center and Lahey Health have signed a letter of intent to merge. The merger will form the second-largest health system by revenue in the state and will include eight hospitals and an estimated $4.5 billion in annual revenue.
Following six years and five previously failed negotiations, the signed letter of intent marks the first time the two health centers have filed a letter of intent to merge. Earlier plans to merge the two Massachusetts based institutions failed in the past due disagreements as to who would lead the combined entity.
The newly merged entity will be led by Beth Israel CEO Kevin Tabb, MD, along with a hospital board comprised of an equal number of representatives from both organizations.
“We are engaged in ongoing discussions, exploring the opportunity to combine our two systems and create the region’s premier integrated healthcare delivery system, one that would offer patients exceptional care and unparalleled value, while keeping care in the community whenever possible,” said Tabb.
Howard Grant, MD, CEO of Lahey Health also shared his support the merger, stating, “I am confident that the affiliation path will position Lahey Health for further success and growth. I look forward to working to bring the benefits of this combined organization to the people of Massachusetts.”
Source(s): Becker’s Hospital Review, February 2017; Boston Globe, February 2017; Modern Healthcare, February 2017; Boston Business Journal, March 2017; Bloomberg, March 2017; Eagle Tribune, February 2017;