Dartmouth-Hitchcock Health and GraniteOne Health Sign Letter of Intent to Merge, Poised to Reshape Healthcare in the Northeastern U.S.

VCBeat (WeChat Official Account: vcbeat) has learned that Dartmouth-Hitchcock Health and GraniteOne Health, the two largest hospital systems in New Hampshire, USA, have recently signed a letter of intent to merge. The plan involves merging with GraniteOne Health, a healthcare system that includes the Manchester-based Catholic Medical Center. This proposal will strengthen the influence of the Lebanon-headquartered health system in New Hampshire, where it already operates clinics and has previously sought merger opportunities.

This merger will reshape New Hampshire’s healthcare system and create a new eight-hospital network spanning New Hampshire and Vermont. The newly combined entity will include five hospitals under Dartmouth-Hitchcock Health, including Dartmouth-Hitchcock Medical Center (DHMC), the state’s largest private employer and only academic medical center; as well as three hospitals under GraniteOne: Catholic Medical Center, Huggins Hospital in Wolfeboro, New Hampshire, and Monadnock Community Hospital in Peterborough, New Hampshire. Their integration will help healthcare organizations in New Hampshire better meet the growing demand for inpatient, specialty, and subspecialty rehabilitation services.

Executives from both parties pledged to coordinate and strengthen behavioral health services, aiming to prevent substance abuse and enhance healthcare delivery in rural areas. Meanwhile, they also committed to addressing issues related to nutrition, food security, and preventive care.

Under the letter of intent to merge, each hospital will continue to operate under its own board of directors, with operational management overseen by the Chief Executive Officer and two Regional Presidents. Joanne Conroy, CEO of Dartmouth-Hitchcock, stated that she would devote more time to the Manchester region and would serve as the CEO and President of the newly integrated health system. The new system’s nine-member board of directors will be appointed by Dartmouth-Hitchcock, with six members coming from GraniteOne.

Information on the Merger from the Dartmouth-Hitchcock Official Website

In addition, the merger of the two major hospitals will expand patients’ access to specialized services, aiming to “eliminate anything that does not add value for patients.” For example, pre- and post-transplant surgical care services will be offered for the first time in southern New Hampshire. The impact of the merger will also extend to small rural hospitals, including the sharing of clinicians and the widespread adoption of telemedicine. With the expanded scope of telemedicine services, more patients can receive treatment at local hospitals. Given the accelerating trend of population aging, demand for services from both hospitals is projected to multiply in the coming years.

“Even with information now being shared publicly, the merged organization holds a strong position in the bond market,” said Conroy. The merger proposal aims to achieve cost savings by integrating back-end services and enabling data sharing. Dartmouth-Hitchcock Health has an annual operating budget of approximately $2 billion, while GraniteOne’s operating budget is around $600 million. Additionally, the Department of Health has allocated $59 million to support the expansion of GraniteOne’s outpatient facility in Manchester, which will include a six-room ambulatory surgery center, medical infusion suites, a pharmacy, magnetic resonance imaging (MRI) capabilities, and new office space.

Currently, Health and GraniteOne Health both aim to complete their internal reviews before June and finalize regulatory reviews by mid-2020 to expedite the merger.

Dartmouth-Hitchcock Health (DHMC) is the only academic medical center in New Hampshire, United States. Headquartered in Lebanon, New Hampshire, it originated from the Dartmouth-Hitchcock Clinic, which was founded in 1927. Dartmouth-Hitchcock Health is also the only Level I trauma center in New Hampshire.

GraniteOne Health is a healthcare organization that integrates the strengths of leading local hospitals, with the goal of providing healthcare services to individuals and families in New Hampshire.

(Compiled by Ning Chen)