N.H. attorney general opposes Dartmouth Hitchcock, Catholic Medical Center affiliation

The New Hampshire attorney general objected to a proposed affiliation agreement between Catholic Medical Center Healthcare System, Manchester, N.H., and Dartmouth Hitchcock Health, Lebanon, N.H. In his report, Attorney General Michael Delaney objected to the proposed transaction because the arrangement would result in “a profound change to governance structure of the CMC Charities and diminish the fiduciary duties” of the CMC board.

Delaney said the two healthcare systems also had not demonstrated adequate due diligence in determining the effects of the transaction on the costs, and that there were insufficient safeguards in place to ensure that the calculation of post-affiliation surpluses are not subject to manipulation or abuse. A joint statement from Thomas Colacchio, president of Dartmouth-Hitchcock and Alyson Pitman Giles, president and CEO of Catholic Medical Center, said, “We are surprised, disappointed and we strongly disagree with the attorney general.” The statement said the two “will actively consider our options to go before a judge to have this reviewed by a court.”