Mayo CEO's expansion comments draw Minn. lawmaker criticism; Other state marketplace news

Apr 12 2013

Comments from the Mayo Clinic's CEO that the organization's proposed expansion in Minnesota could happen elsewhere are drawing criticism from Minnesota lawmakers.

MPR News: Lawmakers Irked By Mayo Clinic CEO's Comments
Members of the state House Tax Committee had some sharp words Wednesday for Mayo Clinic. The criticism came in a committee hearing a day after Mayo's CEO suggested that Mayo Clinic would expand elsewhere if Rochester does not receive a half-billion dollar subsidy from the state. On Tuesday, Mayo Clinic CEO John Noseworthy delivered a speech at the National Press Club in Washington D.C., during which he said that other states would be eager for Mayo to expand there if Minnesota does not provide a taxpayer subsidy (Scheck, 4/10).

In merger and acquisition news, a proposed merger between two health systems in Minnesota begins to fall apart, and a deal for a hospital purchase advances in Massachusetts -- 

MPR News: Sanford Withdraws From Fairview Merger Talks
Sanford Health is withdrawing from merger discussions with Fairview, according to a statement released by the company. The announcement comes three days after Minnesota Attorney General Lori Swanson held a public hearing to question whether the merger was in the best interest of Fairview Health Services. The merger talks had been underway for weeks, but just last week the University of Minnesota made public that it was also courting Fairview (Sommer, 4/10).

Boston Globe: Partners' Deal To Acquire South Shore Hospital Advances
The state Public Health Council voted Wednesday to grant a license to transfer ownership of South Shore Hospital in Weymouth to Partners HealthCare System, a deal that would continue the trend toward consolidation of Massachusetts hospitals. Council members, on a 9-to-1 vote with one abstention, approved a "determination of need" certificate under which Boston-based Partners, the state's largest hospital and physicians organization, would become sole corporate owner of the 378-bed regional hospital (Weisman, 4/11).