New Hampshire Health Care Market Attracts Out-of-State Expansion
Deal News | Jun 19, 2025 | EIN
New Hampshire's unique geographic and political landscape makes it an attractive market for out-of-state hospital acquisitions. The state's lighter regulatory framework compared to its neighbors, elimination of the Certificate of Need Board in 2016, and a high percentage of residents with private health insurance contribute to this trend. The Attorney General's Office now serves as the principal oversight body for mergers, having raised concerns about potential anti-competitive effects. Despite previous objections, AG John Formella approved HCA's acquisition of Catholic Medical Center due to the hospital's financial struggles. Recent acquisitions such as Beth Israel Lahey's purchase of Exeter Hospital have established financial commitments to the state’s Healthcare Consumer Protection Trust Fund. Public opinion on these consolidations is mixed, as evidenced by recent hearings involving stakeholders. The state is exploring additional measures to evaluate and manage healthcare market consolidation, including consultations and the potential establishment of a patient advocate office.
Sectors
- Healthcare
- Regulatory
Geography
- New Hampshire, USA – The central geographic focus, highlighting its attractiveness for hospital acquisitions due to political and economic conditions.
- Massachusetts, USA – Neighboring state facing stricter regulations, making New Hampshire an appealing alternative for hospital expansions.
- New England, USA – Wider regional context provided through state collaborations for healthcare market analysis and best practices.
Industry
- Healthcare – The article focuses on hospital acquisitions and the implications of healthcare market consolidation within New Hampshire.
- Regulatory – References to regulatory changes and oversight, such as the elimination of the Certificate of Need Board and the role of the Attorney General's Office.
Financials
- 10 million over 10 years – Financial commitment by Beth Israel Lahey to the Healthcare Consumer Protection Trust Fund.
- 7.5 million over 10 years – Financial obligation by HCA following its acquisition, aimed at consumer protection.
- 1.6 million – Allocated amount from the Healthcare Consumer Protection Trust Fund for a research contract with the University of New Hampshire.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| HCA Healthcare | Acquirer of Catholic Medical Center | Company | A healthcare provider involved in the acquisition of Catholic Medical Center amid financial struggles. |
| Catholic Medical Center | Target Company | Company | A Manchester hospital that was acquired by HCA due to financial challenges. |
| Beth Israel Lahey Health | Acquirer of Exeter Hospital | Company | Invested in the New Hampshire healthcare market with financial contributions to the trust fund. |
| Frisbie Memorial Hospital | Acquired Hospital | Company | Subject of public hearings after being acquired, with mixed public opinion on the outcomes. |
| Josephine Porter | Strategic Adviser | Person | Advises on healthcare strategies and praises New Hampshire's patient mix and regulatory environment. |
| Lucy Hodder | Director, Health and Life Sciences Law and Policy | Person | Provided data insights on health insurance coverage within New Hampshire. |
| John Formella | Attorney General | Government | Oversees hospital mergers with a focus on maintaining competition, approved recent acquisition due to financial concerns. |