Northeast, Addison Gilbert affiliating with Lahey Medical

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July 19, 2011

Northeast, Addison Gilbert affiliating with Lahey Medical

By Richard Gaines Staff Writer The Gloucester Daily Times Tue Jul 19, 2011, 05:42 PM EDT

Northeast Health System, the parent nonprofit company of Beverly Hospital, Gloucester's Addison Gilbert Hospital and other area service providers, is being merged with the Lahey Clinic Medical Center, according to emails to staffers who provided the news to the Times this morning.

The decision to be absorbed into Lahey ends a lengthy public shopping exercise for Northeast, which also had been courted by the giant Beth Israel Deaconess Medical Center, and two for-profit systems — Steward Health Care, which was created last year the Caritas hospitals, and Vanguard Health System, a Tennessee-based firm which also owns two central Massachusetts herlth0-care facilities.

No terms of the deal are yet available. Lahey is based in Burlington with a major satellite medical center the grounds of the North Shore Mall in Peabody.

Northeast, which acquired Addison Gilbert through an earlier merger in 1994, is the largest and most stable medical system to put itself on the market for a merger/acquisition by a larger partner. Northeast CEO Ken Hanover told the Times in an interview in June at the imperative driving the strategic decision was the investment capital that a merger of partnership with a larger health care company can provide.

Official announcement of the merger/acquisition decision is expected later today, but the news was disseminated to staff by email this morning.

We will update this story here at gloucestertimes.com as more information becomes available.

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Richard Gaines can be reached a 978-283-7000, x3464, or at rgaines@gloucestertimes.com.