Massachusetts Eye and Ear: Deciding Whether to Join Partners HealthCare

By Pathipati, Akhilesh S, Bundorf, Mary K
2016 | Case No. P92 | Length 15 pgs.

This case follows John Fernandez, CEO of Massachusetts Eye and Ear, as he evaluates whether or not his organization should join Partners HealthCare, the state’s largest healthcare provider. Starting in the mid-2000s, there was a growing trend towards provider consolidation in health care. Many physician practices joined larger groups or hospitals, while independent hospitals integrated into larger health systems.

The case explores the causes and consequences of health care consolidation, including the impact of policy reform. It then identifies key costs and benefits for an independent hospital considering an acquisition offer from a major health system. In doing so, it highlights the challenges and opportunities that managers of small providers face in a changing regulatory environment.

Learning Objective

This case gives students an opportunity to analyze options for a firm considering an acquisition offer. More specifically, it is designed to help students learn about provider consolidation in the health care industry and the tradeoffs facing independent hospitals in the context of health care reform.
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