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Northeast Health System to merge with Lahey Clinic

The Boston Globe, July 20, 2011

Northeast Health System, which operates hospitals in Beverly, Gloucester, and Lynn, has agreed to affiliate with Lahey Clinic of Burlington, a teaching hospital affiliated with Tufts Medical School, in the latest hospital merger in Massachusetts. The deal, which will create a new umbrella company called Lahey Health System, could affect other potential consolidation moves. Lahey had begun preliminary merger talks with Boston's Beth Israel Deaconess Medical Center, a Harvard-affiliated teaching hospital that had also submitted a bid for Northeast. Lahey and Northeast are both nonprofit organizations. Two for-profit hospital chains, Steward Health Care System and Vanguard Health Systems, had also initially submitted bids for Northeast, though Boston-based Steward ultimately dropped out of the competition.