South Shore Hospital/Partners HealthCare Deal Collapses

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South Shore Hospital will remain an independent hospital.

The South Shore Health and Educational Corporation announced on Tuesday that an attempted merger with Partners HealthCare has been called off.

The announcement came in a stipulation of voluntary dismissal filed in Suffolk Superior Court. The state will still review a potential acquisition of Hallmark Health Corporation by Partners.

“We appreciate the thoughtful process that Partners engaged in while making this important decision, and believe it is the right choice for Partners and the Commonwealth. We are thankful for the valuable input that was provided by the healthcare community throughout this process to help reach this result. Our office will now continue to review the proposed acquisition of Hallmark. Today’s decision does not change the fact that the work to make healthcare more affordable remains a major challenge ahead. Our office is committed to tackling that challenge, and we look forward to working cooperatively with all stakeholders on this important issue for our families, businesses, and Massachusetts,” Attorney General Maura Healey said in a statement.

Partners, which operates 10 hospitals in Massachusetts including Massachusetts General and Brigham and Women’s, had struck a deal to acquire South Shore Hospital with the approval of former state Attorney General, Martha Coakley. Under the terms of the agreement, Partners would have been allowed to take over South Shore Hospital, but temporary limits on pricing and other restrictions would have been imposed on the hospital according to the Boston Globe.

Healey, however, opposed the deal with concerns that it would increase health care costs. The deal was rejected by a Suffolk Superior Court judge last month, with Healey threatening to sue Partners if it attempted to complete the acquisition.

In a statement, South Shore Health and Educational Corporation President and CEO Richard Aubut said that the prospect of costly and prolonged litigation to advance the merger would not be in the best interests of their patients, providers, colleagues, and community.

“I sincerely appreciate the thousands of you who spoke up in support of our plans to join Partners. State officials may have dismissed what you had to say, but your message was loud and clear. You understood how the merger would have resulted in a $200 million investment in our community to accelerate the provision of high-quality care that is more coordinated, efficient and affordable. It is profoundly disappointing that the people of the South Shore have been denied the opportunity to benefit from what our merger with Partners would have made possible for them,” Aubut said.

Photo Credit: WHDH