NHS News

Affiliation Q & A 

Northeast Health System and Lahey Clinic to form a new, integrated healthcare delivery system of high-quality, cost-efficient, community-based care

Q. What exactly was decided?
A. The NHS Board of Trustees unanimously voted to accept a unanimous recommendation from the Affiliation Advisory Committee to affiliate with Lahey Clinic through the formation of a new organization. Under the new affiliation structure, a parent organization will be created by NHS and Lahey Clinic Foundation to govern both organizations. A new board will be created and consist of an equal number of representatives selected from the NHS board and Lahey Clinic Foundation board. Additional board members, unaffiliated with either organization, will be selected from the community. The new organization will be called the Lahey Health System, and will be led by Howard Grant, JD, MD, as president and CEO.

Q. What happens next?
A. With the Board's vote, we now enter into a definitive agreement process that will take about 90 days. During this time, we will identify the best approach for bringing our two organizations together. Concurrently, we must engage in the standard regulatory review process at both national and state levels, which could take several months.

Q. Why did we choose Lahey Clinic over the other organizations?
A. After months of extensive analysis and discussion, our Affiliation Advisory Committee determined that an affiliation with Lahey Clinic provided the best opportunity for us to create an exceptional healthcare delivery system of high-quality, cost-efficient, community-based care in northeastern Massachusetts; one that is capable of managing the patient care in accordance with changing community needs and new payment and healthcare delivery systems. NHS and the Lahey Clinic have always maintained a complementary focus of care here on the North Shore, and we have enjoyed a strong history of successful clinical collaboration. When completed, the new enterprise will be an affiliation of two well-respected and financially stable healthcare organizations strongly positioned to meet the challenges of the ever-changing healthcare landscape.

Q. Why did you make this decision now, the last you updated us, a decision wasn't expected until September?
A. Our Affiliation Advisory Committee undertook an exhaustive evaluation process over the past several months that included extensive analysis, site visits to hospitals run by each of the suitors, presentations by the suitors to the medical staff, and significant deliberation and debate. This work extended our timeline. It was important to give the Affiliation Advisory Committee, and subsequently the full NHS Board of Trustees, the time they needed. However, once the Affiliation Advisory Committee was confident that all of their questions were answered, the decision to recommend Lahey Clinic was unanimous. The Affiliation Advisory Committee was fully prepared and made a thorough presentation to the Board of Trustees who felt they had the information they needed to come to a decision, which was also unanimous.

Q. Why have you decided to enter into an affiliation and not a sale?
A. As you know, both NHS and Lahey Clinic have a long history of providing high quality medical care to this region. We have always maintained a complementary focus on the North Shore and we have a strong history of successful clinical collaboration. Our Board has determined that forming a new corporation with Lahey Clinic will enable us to create a high- quality, cost-efficient, community-oriented organization that is well positioned to meet the healthcare needs of our communities under the demands of both state and federal healthcare reform. This decision reflects our shared common values and our commitment to maintain and deploy resources in our local communities.

Q. Is Lahey taking over NHS?
A. No. Through this affiliation, both organizations are coming together under a newly created parent organization to form a new, integrated healthcare delivery system; one that will enable us to develop more innovative approaches for effectively coordinating and managing patient care under current and proposed payment models.

Q. Did the Steward decision to withdraw from these discussions impact our process in any way?
A. Steward notified us near the end of the process that they were withdrawing from our affiliation talks. We appreciate the time and effort they put into this process and we wish them well. Steward's decision did not impact our process. The Affiliation Advisory Committee recommended Lahey Clinic as our affiliation partner for the reasons described. Lahey provides the best opportunity to create the region's premier high-quality, low-cost, community-based healthcare delivery system.

Q. How will the affiliation affect NHS staff? Will there be any layoffs? Will benefits remain the same?
A. We know that this announcement raises many, many questions. We must now engage in our own integration process. During this time, we will identify the best approach for bringing our two organizations together. We want to assure staff that our intention is to create a top quality healthcare organization that is attractive to patients, physicians, employees and payers alike. Together, we will more effectively compete for business through our ability to provide exceptional care and service in an efficient manner. We will continue to keep you updated with major developments.

Q. What will current NHS President and CEO Ken Hanover's role be in this new health system?
A. Ken Hanover will continue to serve as president and CEO of NHS for the time being. During the next phase, we will identify the best approach to bring our two organizations together, including additional specifics about leadership structure. We will continue to keep you updated with major developments.

Q. Will our name change?
A. Under the new affiliation structure, a new parent organization will be created by NHS and Lahey Clinic Foundation to govern both organizations. This new organization will be called the Lahey Health System.

Q. What will happen to the NHS leadership team?
A. There will be no immediate changes. We must now engage in our own integration process. During this time, we will identify the best approach for bringing our two organizations together.

Q. What will happen to Addison Gilbert Hospital with the affiliation?
A. Both NHS and Lahey Clinic understand and respect the deep commitment in the Cape Ann community toward Addison Gilbert Hospital, and with the affiliation, AGH will remain open and its emergency services running as usual.

Q. Will you now provide a written guarantee to keep AGH open and continue the eight essential services?
A. We are pleased to announce that Addison Gilbert Hospitalis protected in this agreement by a commitment to continue operating as a full service community hospital for the next three years. NHS continues its commitment to support the healthcare needs of the Cape Ann community and has invested tens of millions of dollars in infrastructure and program development at AGH over the last 15 years. We built a state-of-the-art cancer and specialty care center that all of us are deeply proud of; expanded and improved emergency services; and are in the midst of a multi-year effort to add new primary care doctors at Addison Gilbert to meet community need. With the affiliation, all services and facilities will be evaluated to ensure community needs are being met effectively and efficiently. We know how much the Cape Ann community values AGH and we hope the community will continue to support this valuable resource by utilizing its emergency, primary care, outpatient and inpatient services.

Q. How will the affiliation affect patients? Will there be any changes to insurance coverage or doctors?
A. We believe that this affiliation is exciting news for our patients. We share many values and goals with Lahey Clinic, one of which is our dedication to providing the highest quality care and services. With this affiliation, patients can continue to see their own doctors and their insurance will continue to be accepted. As we move forward with this affiliation, we look forward to greater opportunities to offer a variety of new assets and services to our patients and communities.

Q. What will happen to our relationship with the Massachusetts Nurses Association?
A. As NHC has previously stated, the union will remain intact at Northeast Hospital Corporation and the MNA recognized with any merger, sale or affiliation. This remains true with our decision to affiliate with Lahey Clinic. We are pleased to report that NHC and the MNA have reached a memorandum of agreement (MOA) that represents a fair and reasonable contract for both organizations. As of July 19th, the MOA is pending ratification by the nurses here at NHC and is subject to NHS Board of Trustee approval.