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NH Attorney General gives green light to Concord Hospital acquisition of LRGH

  • Lakes Region General Hospital

Concord Monitor
Published: 4/21/2021 10:01:25 PM
Modified: 4/21/2021 10:01:28 PM

The New Hampshire Attorney’s General Office has approved Concord Hospital’s bid to purchase Lakes Region General Healthcare while stipulating certain protections for patients and medical staff.

The parent company of hospitals in Laconia and Franklin declared Chapter 11 bankruptcy last year due largely to the costs associated with some $128 million in debt. After searching for a potential buyer for years, only Concord Hospital emerged with a bid to purchase LRGH for $30 million.

The path to merge the two hospital systems has not been linear. Two years ago, Concord Hospital expressed interest in LRGH, as did a number of other organizations, but all backed out when they realized the extent of LRGH’s debt.

Though Concord Hospital didn’t have any competition to acquire bankrupt LRGHealthcare, it had to overcome several objections to the sale by various creditors.

Former New Hampshire Attorney General Gordon MacDonald objected in a filing saying, “the proposed sale would leave the Debtor undercapitalized and likely unable to pay the State upwards of $10 million owed in connection with a state program used to fund uncompensated care for individuals.”

The Attorney General’s Office evaluated health care data for market share, market concentration, and patient choice among the two systems before ultimately agreeing to the terms of the acquisition.

The consent of the AG’s Office included requirements for the newly merged hospitals to include protections against unfair payment rates and related reimbursement terms, prohibitions against anti-competitive practices and protections for physicians.

The deal will likely save the Franklin and Laconia hospitals, which Kevin Donovan, CEO of LRGHealthcare, predicted would shut down before summer if the deal did not go through.

“If this is not approved, it is my estimation that LRGHealthcare will close its doors within the next 30 to 60 days. … Our region will essentially be left without primary and secondary health care services,” he said.




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