Citing difficulties in the healthcare industry, a potential merger between UMass Memorial Health and Heywood Healthcare has been terminated.

According to a joint statement sent by Debora Spano, media and public relations manager at UMass Memorial Health, the two companies signed a non-binding Letter of Intent (LOI) last May to explore options for a corporate affiliation. Over the last seven months, the two companies have worked to evaluate the opportunities for that transaction.

“Given changed circumstances for both parties, and the difficult health care environment in which we find ourselves, UMass Memorial has decided reluctantly that this is not the time to pursue the corporate affiliation as initially contemplated,” the statement read. “As a result, the LOI with Heywood has been terminated.”

Heywood and UMass Memorial currently collaborate on a number of programs, according to a news release issued last May, and the proposed affiliation would build on these existing relationships and create opportunities for long-term benefits. These would have included increased access to capital for facility improvements, reduction of overhead costs, expanded access to specialists, and increased capacity to support competitive wages, professional development.

Heywood would have become a member hospital within the UMass Memorial Health system, joining UMass Memorial Medical Center, UMass Memorial Health - Harrington Hospital, UMass Memorial Health - HealthAlliance-Clinton Hospital and UMass Memorial Health - Marlborough Hospital.

Heywood Healthcare is comprised of Heywood Hospital, Athol Hospital, Heywood Medical Group—with primary care physicians and specialists located throughout the region—and The Quabbin Retreat, which treats mental health and substance misuse.

According to the statement, UMass Memorial and Heywood Healthcare “have had a long and collaborative relationship serving the people of North Central Massachusetts,” and this will continue.

“While our current discussions have ended, we look forward to exploring additional ways to work together to best serve the health care needs of the region.”

Max Bowen can be reached at 413-772-0261, ext. 265 or at mbowen@recorder.com.

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