Exeter Hospital merger with Beth Israel: Residents weigh in on proposed deal

EXETER – The public aired their thoughts and concerns for the future of Exeter Hospital Wednesday, as the state charitable trust unit held a hearing on a proposed merger with Beth Israel Lahey Health.

Executives from Exeter Health Resources and Beth Israel Lahey Health sat on a panel in the Exeter High School auditorium before an audience of representatives from the state, federal government and the public. They framed their proposed merger as a chance for Exeter Hospital to stay viable by joining an organization in Beth Israel Lahey that would invest $375 million in Exeter over the next 10 years.

The charitable trust unit must sign off on the merger first, along with the state of Massachusetts and the Federal Trade Commission. While the hearing drew some skeptics of whether the care will stay the same, it also drew some residents who supported the move to ensure the local hospital stays intact. The hospital had a worse year financially in 2022 than previous years, a consultant for the Department of Justice told the crowd.

“The benefits clearly outweigh the potential concerns, so I would hope the state would recognize that when it decides how it wants to rule,” said Peter Lennon of Exeter as a member of the public.

Previous story:Exeter Hospital, Beth Israel Lahey deal could mean $375M investment in Seacoast

Lennon pointed to a past merger sought by Exeter Hospital that saw opposition from the state, whose representatives were concerned it was anti-competition. He said losing Exeter Hospital due to financial challenges would be just as harmful to competitive healthcare in the state.

“If Exeter Hospital goes away,” Lennon said, “There’s no competition there either. So, if the state is concerned about competition in healthcare, it should support this merger.”

Katherine Surman of Dover said she had family members that were sent from their doctor in Exeter to Beth Israel in Boston on frequent burdensome trips during a health crisis, only to find out later that the trips were unnecessary. She asked members of both hospital groups if they could ensure such confusion will be avoided in future care if the merger takes place.

Peter Shorett, chief strategy officer at Beth Israel Lahey Health, said the merger would increase coordination between the two hospitals and diminish confusion.

“Today we don’t have an affiliation between Exeter and Beth Israel. There’s actually not a high degree of coordination,” Shorett said. “In the future, as we affiliate, we expect there will be a much higher level of coordination between our facilities, between our providers.”

Shorett said the goal would be to invest in Exeter so locals could get their care in New Hampshire rather than traveling more frequently to Boston. He pointed to their merger with Jordan Hospital where patients from Cape Cod who previously traveled to Boston have since been receiving their care in nearby Plymouth, Massachusetts.

“We’ve invested in building locally so (the patient) doesn’t have to come to one of our larger tertiary facilities,” Shorett said. “That’s the promise.”

Under the proposed terms of the affiliation, Beth Israel Lahey Health would become the sole corporate member of Exeter Health Resources, which includes Exeter Hospital, Core Physicians and Rockingham Visiting Nurse Association & Hospice. Exeter Health Resources' structure will stay the same and the local board will continue to oversee ongoing operations, reviewing and recommending strategic plans and operating and capital budgets as well as philanthropy and community benefit funding.

Shorett told people Wednesday the merger would empower Exeter in the Beth Israel Lahey Health network as a voice in the overall system. He said they would also build on Exeter’s 125-year legacy and work to create a “full continuum of care” ranging from oncology, cardiovascular, neuroscience and mental health.

Tyler Brannen, senior health economist at the firm BerryDunn, was brought in as a consultant for the Department of Justice. He said his firm has identified some concerns with the merger, including a potential reduction in the scope of services, change in referral relationships and providers, and changes to local control of hospitals.

However, Brannen said Beth Israel Lahey Health has the means to help Exeter maintain its services and improve on them as well. He said Exeter has done well in that it has weathered the coronavirus pandemic and “kept services afloat” in a time when staffing has been a challenge. Financially, the hospital had a “much weaker” performance in 2022, he said, and that merging with a hospital network with the resources of Beth Israel Lahey Health could be beneficial.

“The BILH proposal is representative of many needs, and BILH is well positioned to provide them,” Brannen said. “A lot of promise and a lot of good things could come of it, for sure.”

This article originally appeared on Portsmouth Herald: Exeter NH Hospital merger with Beth Israel: Residents weigh in on deal