Coakley said she is concerned that the Atrius Health network, which includes Harvard Vanguard Medical Associates and South Shore Medical Center, could use its size to secure higher payments from insurers. She hopes the agreement, filed in Suffolk Superior Court, will prevent “unwarranted price increases.’’
The agreement comes as many health care providers are consolidating or partnering with others as they prepare for changes in state and federal laws designed to reward big, efficient systems.
“At a time when health care costs are a major concern for individuals and businesses throughout the Commonwealth, my office will continue to examine market affiliations to ensure potential benefits to consumers outweigh potential anticompetitive effects,’’ Coakley said.
Fallon Clinic, based in Worcester, includes about 250 doctors and reported revenue of about $285 million in 2008, according to its most recently available tax filing. It will join five practices already part of the Atrius system that had a combined revenue of $1.65 billion last year, including Dedham Medical Associates, Granite Medical, and Southboro Medical Group.
The expanded Atrius will include more than 1,000 doctors.
Fallon and Atrius signed a letter of intent to combine a year ago. Atrius’s chief executive, Dr. Gene Lindsey, said the two organizations saw they could work together to lower the cost of providing care by sharing technology, purchasing contracts, and expertise.
“We’re not coming together with the idea of using market power to drive the request for higher reimbursement,’’ he said. “This is an affiliation that is built on conceptualizing how to be better stewards of scarce resources.’’
In their court filing yesterday, Fallon and Atrius said their combination would not limit competition between health care providers, but they agreed to the additional state oversight for the partnership to move forward.
Lindsey said the oversight from Coakley’s office is appropriate and fits a trend toward more financial transparency in health care.
“I guess we’re going to be on the leading edge of that, and we’re delighted to be there,’’ he said.
