Lahey Health and Community Hospital Partners Celebrate Milestone Anniversaries; Formation of System

June 30, 2016

Beverly, Addison Gilbert, Winchester Hospitals Realize Increase in Admissions’ Volumes, When others are Experiencing Flat or Declining Utilization

BURLINGTON, MA – Lahey Hospital and Medical Center, along with Addison Gilbert, Beverly and Winchester Hospitals, are marking the fourth anniversary of the formation of Lahey Health System. Lahey Health System was formed in May 2012 with the coming together of Lahey Clinic Foundation and the Northeast Health System (NHS), which includes Addison Gilbert and Beverly Hospitals. Since then, Addison Gilbert and Beverly Hospitals have seen a 15 percent increase in admissions. Winchester Hospital joined Lahey Health System in July 2014 and has seen medical/surgical volume increase by more than five percent in the past two years.

The increased volume to the three hospitals comes at a time where those community hospitals affiliated with other large systems in the northeast region experienced declining or flat utilization during the same time period.

“The coming together of Addison Gilbert and Beverly Hospitals with Lahey to form the new Lahey Health System was a watershed moment for all involved. The addition of Winchester Hospital just two years later strengthened not only our system, but our ability and commitment to keeping care in the community,” said Howard Grant, J.D., M.D., President and Chief Executive Officer, Lahey Health System.These affiliations have enabled us to build a better, stronger system by providing new avenues to bring the benefits of our shared resources to patients.  Meanwhile, the increased patient volume has also strengthened the individual financial standing of our institutions ensuring they remain viable options for high quality care.”

The partnership has seen Addison Gilbert and Beverly Hospitals upgraded twice by Moody’s. In January 2013 it was upgraded from Baa2 with a stable outlook to a positive outlook. A year later, it was upgraded to Baa1 with a stable outlook. Since Winchester joined Lahey Health System in 2014, the hospital has achieved $13.8 million in savings across a variety of areas (e.g., pharmaceuticals, implants, nutrition), as well as bond rating upgrades to “A-, Stable Outlook” and “A, Stable Outlook” from Fitch Ratings and Standard & Poor’s, respectively. In addition, referrals from Lahey Hospital and Medical Center primary care physicians to Winchester Hospital affiliated specialists doubled from the first quarter of FY 2015 compared to the first quarter of FY 2016.

“The relationship with Lahey Health has enabled us to continue to grow and strengthen both Beverly and Addison Gilbert Hospitals through increased admissions, the ability to gain additional accreditations as well as reaching even higher quality and safety benchmarks,” said Phil Cormier, Chief Executive Officer, Beverly and Addison Gilbert Hospitals. “Lahey Health’s commitment to providing the highest-quality care in the most appropriate cost-setting has been a tremendous benefit - both to our hospitals and to our patients and their families who are able to continue to receive care close to home.”

The partnership among the organizations has been successful in executing a joint vision of improved care in the community. In the spirit of Lahey’s mission to keep care local, preserve the vitality of facilities and reduce costs, Lahey Hospital and Medical Center (LHMC) in Burlington and Lahey Medical Center in Peabody actively and routinely redirect their low‐acuity emergency department patients to local community hospitals, including more than 400 inpatient transfers to Addison Gilbert and Beverly Hospitals, and nearly 400 to Winchester Hospital in the last year. Additionally, the collaboration among physicians since the partnership is a tribute to the Lahey care model and culture of its system.

“The affiliation with Lahey Health has provided tremendous value to our hospital, particularly through enhanced clinical programs led by our Physicians’ Leadership Council and general improvements to increase the level of care we deliver to our patients,” said Dale Lodge, Chief Executive Officer, Winchester Hospital. “While other systems could provide support with resources, Lahey stood out for the equal representation they offered us on the board. Having a strong voice is important to ensuring all stakeholders are satisfied. Lahey has demonstrated keen awareness of that.”

Understanding that NHS was deeply rooted in the communities they serve and that maintaining that strong connection would be paramount, NHS received equal representation with Lahey Clinic, along with an equal number of unaffiliated members, on the Lahey Health board. Four of Lahey Health’s current board positions are held by NHS, with nearly half of the members of the Lahey board coming from a community background. This unique shared governance structure and the promise that the needs of the system’s community hospitals would be heard on the larger board was ultimately one of the deciding factors for NHS, leading to the creation of Lahey Health and has continued to this day.

Four of Lahey Health’s current board positions are also held by Winchester representatives.

“These past four years have seen a healthy, fruitful relationship among the hospitals of Lahey Health, both our tertiary medical center and our community hospitals, in a number of ways, but in particular for strengthening our Board,” said Ann-Ellen Hornidge, JD Chair, Lahey Health Board of Trustees. “At a time where Massachusetts community hospitals are disappearing at a striking rate, ensuring they have a voice and equal standing on the Board is something we feel very strongly about within our overall vision of health care. We believe that we are stronger when we work together. We also believe this sends an important message that Lahey is committed to the needs of all its members.”

About Lahey Health

Lahey Health is what’s next in healthcare, providing a full continuum of integrated health services close to where you live or work. It is comprised of nationally recognized, award-winning hospitals—including an academic hospital and medical center, and community hospitals—primary care providers, specialist physicians, behavioral health services, post-acute programs such as home health services, skilled nursing and rehabilitation facilities, and senior care resources located throughout northeastern Massachusetts and southern New Hampshire.

Lahey Health offers nearly 1,400 locally based physicians providing clinical excellence and an exceptional patient experience in adult and pediatric primary care and every medical specialty, including kidney and liver transplantation; neurosurgery, cancer, cardiovascular and orthopedic medical and surgical care; local emergency and trauma care; urological surgery; chronic disease prevention and health management; and pediatric emergency, newborn and inpatient care provided in collaboration with Boston Children’s Hospital physicians.

Lahey Health includes Lahey Hospital & Medical Center—a teaching hospital of Tufts University School of Medicine—and Lahey Clinic physician group with practices in Burlington, Peabody and other locations throughout northeastern Massachusetts and southern New Hampshire; Beverly Hospital; Addison Gilbert Hospital in Gloucester, Mass.; Winchester Hospital; Lahey Health Senior Care and Lahey Health Behavioral Services as well as more than 30 primary care physician practices and multiple outpatient and satellite specialty care facilities.

Together, we are making innovative, integrated healthcare more personal and more accessible. For more information, visit and its member websites Lahey Hospital & Medical Center, Beverly Hospital, Winchester Hospital, and Lahey Health Behavioral Services.