Exeter Hospital pauses healthcare cuts for six months amid AG review
EXETER — The New Hampshire attorney general announced Wednesday an agreement has been reached with Exeter Health Resources to pause Exeter Hospital’s proposed reductions in healthcare services for six months.
Attorney General John Formella stated the hospital will develop a detailed transition plan for each service being eliminated to ensure no lapse in patient care. The hospital also agreed to cooperate with the New Hampshire Department of Justice’s ongoing review to ensure the proposed cuts comply with the terms of Exeter Health Resources’ 2023 merger agreement with Beth Israel Lahey Health of Massachusetts.
“Over the next six months my office will carefully review the details and information that Exeter Hospital and Beth Israel provide,” stated Formella.
The news comes after Exeter Hospital announced its plans to close Core Neurology, Core Podiatry, Core Pediatric Dentistry and Allergy Immunology by Oct. 11. Exeter Hospital also announced plans to terminate its advanced life support paramedic intercept service by Dec. 20. The service provides highly-trained paramedics to assist neighboring communities when critical care is needed.
The proposed reductions, according to spokesperson Sonya Vartabedian, were because the hospital “continues to face dramatically rising costs, changing patient care trends and a challenging reimbursement environment.”
“While we have made progress in continuing to rebuild our financial health in the post-pandemic environment, we are evaluating all aspects of our operations, including aligning our staff with patient care priorities and focusing our resources on health care programs and services that Exeter Hospital is uniquely qualified to provide,” she stated.
Formella stated once the reductions were announced, his office immediately engaged in discussions with Beth Israel Lahey Health and Exeter Hospital regarding concerns about Beth Israel’s commitments to continue services in the Seacoast community.
During the 2023 merger with Beth Israel Lahey Health, the Massachusetts hospital committed to investing $375 million into Exeter Health Resources, which includes Exeter Hospital, Core Physicians, and Rockingham Visiting Nurse Association & Hospice.
The New Hampshire attorney general’s office signed off on the transaction and the negotiated deal was approved by a judge.
In addition to the $375 million investment, both parties agreed to develop a clinical services growth plan to bring additional services to the Exeter community.
“Exeter Hospital recently announced a series of proposed cuts of healthcare services impacting patient care for thousands, negatively impacting local municipalities, and directly affecting programs and services vital to seniors as well as low-income and disadvantaged populations,” stated Formella. “The announcement provided insufficient notice to patients, care providers, and the community as a whole causing great concern to those impacted.”
Formella stated the six-month pause will allow the New Hampshire Department of Justice time to conduct a thorough compliance review of Exeter Hospital and Beth Israel Lahey Health.
That review will include the final judgment. obligations under the affiliation agreement; obligations under the Exeter Health Resources Clinical Services Growth Plan and compliance with all other relevant provisions of state and federal law.
“The New Hampshire Department of Justice’s role regarding healthcare transactions extends beyond reviewing the proposed affiliation itself,” Formella stated. “We must ensure that healthcare charitable trusts comply with the terms of all agreements as well as state law and do not take action that places patients at risk. Beth Israel has represented to me that it understands its role as a healthcare trust and is committed to regaining the confidence of the community it serves.”
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