“As one of the preeminent hospitals in the country, Massachusetts General has the financial resources and intellectual know-how to help Cooley Dickinson thrive as we navigate the fundamental restructuring of healthcare that is under way," said Matt Pitoniak, chair of the Cooley Dickinson board of trustees, in the news release.
Cooley Dickinson had narrowed the finalists down to Massachusetts General Hospital and Baystate Medical Center, a 659-bed hospital in Springfield, Mass., in its search.
As part of the deal, Massachusetts General Hospital said it will be able to provide Cooley Dickinson with access to “low-interest refinancing of $62 million in bonds, lower malpractice insurance cost and group purchasing rates for big-ticket purchases, such as information technology systems.”
The Cooley Dickinson board and some of the affiliation task force members had expressed concerns that an agreement with Baystate Medical Center could reduce competition in the Pioneer Valley of Massachusetts, the region where Cooley Dickinson is located and where Baystate operates three hospitals.
Cooley Dickinson plans to file the merger agreement with regulators within the next few months and close the deal by the end of the year, according to a hospital spokeswoman.