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Determination of Need Public Hearing TestimonyCraig N. MelinApril 2, 2013
Good afternoon. My name is Craig Melin. I am the President andChief Executive Officer of Cooley Dickinson Hospital. I want to thank the Department of Public Health for holding this hearing to consider our application to be acquired by Massachusetts General Hospital.The decision by our Board to join MGH is part of a deliberateapproach to the future we established a quarter of a century ago, whenCooley Dickinson had only 3 days in cash and almost failed. Since then,we committed to always look ahead at challenges we will face,
determine the best future state for our community’s care system, and
then design and implement plans to achieve that future. Looking aheadlike this enabled Cooley Dickinson to achieve both nationallyrecognized quality performance and a modest annual surplus since thetime of our near demise years ago. This year, The Leapfrog Grouprecognized CDH in the top 5% nationally on quality AND resourceefficiency.So why be acquired and give up our precious independence?Health care is changing dramatically, shifting from just providing greatcare to providing great care and excellent health for the community.
 
 
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T
his has always been CDH’s goal. For example, we
 paid for nurses to
visit heart failure patients’ homes after discharge
. Insurers did not payfor this successful program, which reduced readmissions and improvedquality of life for patients. Financial incentives under health reform will
finally support what we’ve already been doing because it was best for 
our patients. But to continue to do this well, we need investments ininfrastructure and resources to support better coordination of care toimprove health, while at the same time bringing costs down.Looking at tomorrow, we do not believe small communityhospitals can afford the infrastructure or marshal the resources for thesechanges on their own. Consistent with our 25-year-track record, wedecided to take these issues on while we are clinically and financiallysound and in a position to have choices. So, in 2010, we started a Board-driven process involving the medical staff and community to choose the best future and the best partner.Other speakers will describe our process and how we chose fromamong seven systems interested in CDH. In the end, we chose MassGeneral as the partner who would best help us achieve our goals.Our first goal is to have a partner to help us strengthen and expandour programs to ensure greater local access to care. Current clinicalaffiliations with MGH demonstrate they can do this. For example, our cancer affiliation has helped patients stay local, going to Boston only if 
 
 
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needed. They then return home for chemotherapy or radiation therapy,secure in the knowledge of the excellence of our care. Likewise, throughtelemedicine, MGH neurologists help rapidly assess stroke patients inour Emergency Department. We see the improvement in care andaccess, but there are limitations on what we can do through our existingclinical relationships. The financial and intellectual resources as part of MGH and Partners will allow us to better meet community needs thanwe could on our own.Furthermore, our staff and Board are pleased that services inHampshire County will not be diminished because MGH does not intendto redirect care away from the Pioneer Valley if it can be provided welland affordably in our region. Instead, we will provide even better carelocally and ensure the best coordination of care for those who do need toleave the region for advanced tertiary and quaternary care.Our second goal is for help to decrease prices by reducing our costs. CDH has recently dropped many prices by 15% or more. But weneed help to further reduce our costs. As part of MGH and Partners, wecan:
 
reduce our cost of supplies through group purchasing;
 
refinance our $60 million bond debt at lower cost using
Partners’ superior credit rating; and
 
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