Partners HealthCare System's decision to abandon a controversial plan to acquire South Shore Hospital is a victory for the state's efforts to help rein in rising health care costs, according to critics of the proposed purchase.
"It will help moderate costs, and South Shore (Hospital) is a very good system independent of Partners," said Stuart Altman, chairman of the Massachusetts Health Policy Commission, established in 2012 under the state's health care cost-containment law. "In the case of Partners, the problem was they were using their higher reimbursement amounts to generate higher costs."
Partners dropped its bid in the wake of a Suffolk Superior Court judge's rejection last month of an antitrust settlement negotiated by former state Attorney General Martha Coakley that would have paved the way for it to acquire South Shore Hospital and Hallmark Health System's Lawrence Memorial and Melrose-Wakefield hospitals. Attorney General Maura Healey threatened to file an antitrust lawsuit to block any future merger.
"We have listened and heard the public concerns and ... we have decided that the best approach is not to proceed with our plan," outgoing Partners CEO Gary Gottlieb said in a letter to employees yesterday.
That decision is the "right choice for Partners and the commonwealth," Healey said in a statement.
Meanwhile, Gottlieb said Partners and Hallmark agreed "to take a pause as we reflect on next steps."
Healey said in a court filing that she will continue to evaluate that proposal if and when the companies proceed.
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