PRESS RELEASES
Northeast Health System Seeks Affiliation with Lahey Clinic
Northeast Health System Completes its
Affiliation Review Process; Announces Plans to Create Affiliation
with Lahey Clinic
Northeast Health System and Lahey Clinic to form a new
integrated healthcare delivery system serving northeastern
Massachusetts
contact information:
Beverly, MA (July 19, 2011)-- The Northeast Health System (NHS)
Board of Trustees announced today that, by unanimous vote, it has
accepted the recommendation of its Affiliation Advisory Committee
that Northeast Health System affiliate with Lahey Clinic through
the formation of a new organization.
After an extensive review process, the NHS Affiliation Advisory
Committee determined that an affiliation with Lahey Clinic provided
the best opportunity for NHS to create an exceptional healthcare
delivery system of high-quality, cost-efficient, community-based
care in northeastern Massachusetts; one that is capable of managing
patient care in accordance with changing community needs and new
payment and healthcare delivery systems. NHS and Lahey have always
maintained a complementary focus of providing community-based care
and have a strong history of successful clinical collaboration.
This is an affiliation of two well-respected and financially stable
healthcare organizations. The affiliation will also enable
Northeast Physician Hospital Organization and Lahey Clinic to
develop more innovative approaches for effectively coordinating and
managing patient care under current and proposed payment
models.
In January, 2011, NHS announced its plan to proactively pursue
various new organizational arrangements with the goal of
establishing a new, integrated system of care that would serve a
larger population at a lower-cost structure. NHS, which supports a
full continuum of healthcare needs, includes Beverly Hospital,
Addison Gilbert Hospital, BayRidge Hospital, Beverly Hospital at
Danvers, Northeast Medical Practice, Northeast Behavioral Health
and Northeast Senior Health. NHS is a financially sound health
system serving communities throughout the North Shore and Merrimack
Valley. The affiliation is one of a number of strategic initiatives
taken by NHS President and CEO Kenneth Hanover and the NHS Board of
Trustees to prepare NHS for the challenges of healthcare
reform.
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.
"With Lahey Clinic, we believe we will be able to create a
premier healthcare delivery system that significantly increases the
accessibility of leading-edge clinical services for our patients,
while creating an infrastructure that promotes efficiencies,
quality and synergy of services," said Hanover. "This was our goal
from the start of this process and we are very excited that we have
landed at this decision and opportunity today."
"Lahey Clinic and Northeast Health will make a great healthcare
team," said Howard Grant, president and CEO of Lahey Clinic. "This
is a historic moment -- two superb organizations aligning to create
an even stronger integrated healthcare delivery system. Together,
we will provide greater value to patients by enhancing the scope
and quality of services that can be delivered to patients in their
own communities."
Plans for the affiliation must now go through a standard
regulatory process, which could take a number of months before
plans are finalized. Additionally, forums are planned to explain
this new organizational relationship to our communities.
"All of our discussions leading up to this decision revolved
around creating a system that puts patients first," said Irving E.
Rogers, chair, Board of Trustees for Lahey Clinic. "Lahey and NHS
have a long history of working together, and we now have the
opportunity to build on that successful teamwork. We believe that
this is a strong step forward in how healthcare institutions can
align to improve quality and efficiency while reducing costs and
remaining very competitive in the marketplace."
Today's NHS Board of Trustee's announcement comes after months
of analysis by NHS' Affiliation Advisory Committee, which was
comprised of physicians, community board members, and
administrators working in conjunction with a top national
healthcare consulting firm. The Affiliation Advisory Committee
evaluated proposals from four high-quality organizations against
specific criteria that included quality and service, medical staff
and physician relationships, values and culture, and finance and
infrastructure.
"We are an organization dedicated to our mission of quality,
caring and community," said David St. Laurent, chairman, NHS Board
of Trustees. "Of significant importance to this process and
decision was identifying an organization whose philosophy of care
aligns with our own, and whose vision for the future complements
our goals. This decision reflects our shared common values and our
commitment to maintain and deploy resources in our local
communities."
The evaluation process also included site visits to hospitals
run by each of the four organizations and multiple presentations to
the Northeast Hospital Corporation medical staff.
"The medical staff was thoughtfully engaged in this process from
start to finish and is confident in the decision making progress,"
said Steven Defossez, MD, president of the medical staff, Northeast
Hospital Corporation. "From a clinical point of view, we are two
organizations dedicated to providing our patients with exceptional
compassionate care and service. Through this affiliation, we'll
create opportunities to advance the care and services we can offer
our patients."
"We extend our deep felt gratitude to the members of the
Affiliation Advisory Committee for their commitment to and tireless
efforts in this important endeavor," said St. Laurent.
Northeast Health System, Inc.
Northeast Health System, Inc. (NHS) is an integrated healthcare
system comprised of a network of acute-care hospitals, behavioral
health and senior health services dedicated to providing the full
continuum of care to residents of the North Shore and Cape Ann. One
of the largest healthcare service providers in its area, NHS
collaboratively provides primary care; acute, medical and surgical
care; outpatient and diagnostic services; physical therapy and
rehabilitation services; wellness programs; substance abuse
prevention and treatment; mental health services and treatment;
senior health services, specialty care and assisted living. We are
a system of more than 5,000 employees and 600 physicians dedicated
to providing The Leading Edge of Caring.
Lahey Clinic Foundation, Inc.
Lahey Clinic, a physician-led, nonprofit group practice,
is world-renowned for innovative technology, pioneering medical
treatment, and leading-edge research. A teaching hospital of Tufts
University School of Medicine, the Clinic provides quality health
care in virtually every specialty and subspecialty, from primary
care to cancer diagnosis and treatment to kidney and liver
transplantation. Lahey Clinic nurses also earned Magnet status from
the American Nurses Credentialing Center, a recognition only
achieved by six percent of American hospitals. Lahey currently has
more than 5,000 employees including 500 physicians and 1,100
nurses. For more information please visit www.Lahey.org.
