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Jordan Hospital, Beth Israel sign merger deal

Jordan Health Systems Inc. and Beth Israel Deaconess Medical Center entered a merger agreement to combine their Massachusetts companies. Plymouth-based Jordan Hospital will likely change its name following the business reorganization to fit with the system that includes Beth Israel Deaconess-Milton and Beth Israel Deaconess-Needham.

Jordan will continue to operate with its own board of directors; however, three representatives from Beth Israel will reportedly join the board. In exchange, one representative from Jordan will sit on the board of Beth Israel. Following the merger, Beth Israel will be the sole parent corporation of Jordan Hospital and Jordan Hospital Health System. A representative for Jordan stated that Beth Israel's reputation as a world-renowned facility and its values will benefit their patients the Plymouth area.

A representative for Beth Israel stated that the merger will allow Beth Israel to further their philosophy of providing care to residents of southeastern Massachusetts. After the merger, patients will receive hospital care at Jordan whenever possible and will receive additional care from Beth Israel. The companies intend to expand the availability of specialists and primary care facilities in the areas that Jordan serves. Doctors from Harvard Medical Faculty Physicians, working for Beth Israel, will be available to give specialty and sub-specialty care as well.

Both boards approved the proposed merger, but before it becomes final, the Public Health Council and the Massachusetts Health Policy Commission must review the transaction. The newly-formed commission has authority to look at the impact of the merger, both on cost and on the market.

Mergers and acquisitions are a great way for companies to change and grow to keep up with the market. A local business or commercial law attorney may be able to assist with exploring merger possibilities, responding to merger or acquisition offers and negotiating a contract.

Source: Boston Business Journal, "Beth Israel, Jordan Hospital finalize merger agreement", Julie M. Donnelly, August 01, 2013

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