Moody’s: Rejection of Partners’ deal is credit negative for the system

The judge’s rejection of the consent decree that would have allowed Boston-based Partners HealthCare to acquire South Shore Hospital in Weymouth, Mass., and Hallmark Health System in Melrose, Mass., is a credit negative for the system, according to Moody’s Investors Service.

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The rejection of the settlement deal is credit negative for Partners because “it has the potential to limit its affiliation opportunities in Eastern Massachusetts and could lead to increased merger and affiliation activity among competing hospital systems,” according to Moody’s.

The ruling could also curtail the system’s acquisition activity, and it highlights “the greater regulatory oversight Partners operates under, relative to other large hospital systems locally and nationally,” according to Moody’s.

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