Partners revealed its intent to pursue possible partnership models with Harvard Pilgrim, which maintains 1.2 million members, last week. A spokesperson for the health system told the publication, “We’re exploring a number of options that could improve the patient experience, and reduce cost and administrative burden.”
While officials have not disclosed the details of the arrangement, they indicated both institutions will continue doing business with other major healthcare providers and insurers.
However, several experts told The Boston Globe a merger, which would result in the creation of a new healthcare company, would face tough scrutiny from state regulators.
“My guess is that regulators would not like this,” said David E. Williams, president of the Boston-based consulting firm Health Business Group. “There’s no compelling logic for a merger here. There would be a lot of resistance to it.”
“When you’re owned by a health system, it gets kind of dicey to keep your independence and keep a wide network at the lowest cost,” Nancy Kane, PhD, professor of management in the department of health policy and management at the Harvard T.H. Chan School of Public Health in Boston, told The Boston Globe.
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