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December 10, 2014 11:00 PM

Tufts, Boston Medical Center talking about a linkup in a tough market

Melanie Evans
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    Tufts Medical Center and neighboring academic medical center Boston Medical Center have announced talks to “explore a partnership.”

    A deal would bring together two small rivals in Boston's crowded and fiercely competitive hospital market. Tufts Medical Center—which announced in October a newly created health system with Lowell (Mass.) General Hospital, has seen its market share hold steady around 3%, according to recently published data for the years 2007 through 2011.

    Boston Medical Center saw its market share decline from just above 6% to just below 5% during the same period. The medical centers compete directly with hospitals owned by Partners HealthCare, the largest health system in Massachusetts, currently engaged in legal battle over its planned expansion.

    Officials with Tufts and Boston medical centers declined interview requests. In written statements, officials said the prospective partners have a shared commitment to research and medical education.

    Tufts Medical Center closed its books last year with operating income of $13.8 million on revenue of $866.3 million. Boston Medical Center ended the year with income from operations of $7 million on revenue of $1 billion.

    “Bringing our strengths together could be very powerful and meaningful, and we look forward to continuing our conversations with BMC,” Tufts Medical Center spokeswoman Julie Jette said in statement. Tufts Medical Center is affiliated with Tufts University. Boston Medical Center is the teaching hospital for Boston University.

    “Our two organizations have a rich history of developing innovative services and partnerships for patients,” said Jennifer Watson, Boston Medical Center's vice president of communications and chief of staff, in a written statement. “Like the rest of the health care community, we have considered strategic partnerships, and with (Tufts Medical Center) we have recognized that the combination of our individual strengths could create a partnership uniquely positioned to improve health care in Massachusetts.”

    The state’s Health Policy Commission, which must be notified at least 60 days prior to a hospital merger, said it had not received notice of a deal between Tufts Medical Center and Boston Medical Center. The agency reviews mergers to determine if consolidation is likely to increase healthcare costs or reduce competition. “The potential merger of Tufts Medical Center and Boston Medical Center would constitute a significant change in the Massachusetts health care market, and the HPC looks forward to reviewing the details of any proposed merger,” the agency said in a statement.

    Follow Melanie Evans on Twitter: @MHmevans

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      • Conferences
        • The 2030 Playbook Conference
        • Innovations in Patient Experience
        • Leading Women Conference & Awards Luncheon
        • Leadership Summit
        • Workforce Summit
      • Galas
        • Best Places to Work Awards Gala
        • Diversity Leaders Gala
      • Virtual Briefings
        • - Looking Ahead to 2025
        • - Financial Growth
        • - Hospital of the Future
        • - Value Based Care
        • - Looking Ahead to 2026
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
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