\u201cWe believe there is another path,\u201d Aaron Robinson, South County\u2019s CEO, said in a statement, arguing that hospitals typically have had to sacrifice independence to gain the scale and expertise to compete.<\/p>\n
Mayo spokeswoman Caroline Auger said the relationship does not represent a targeted expansion of the medical giant\u2019s physical presence in New England. <\/p>\n
But it is part of a broader growth strategy for Mayo, which is based in Minnesota<\/a> and often touted as the top hospital in the world. It has built of web of relationships with independent hospitals, offering clinical expertise, technology and supply chain. There are many community hospitals that, like South County, are struggling to survive on their own and can use the help of a well-known national name.<\/p>\n Executives at the Boston region\u2019s major systems \u201cshould be concerned,\u201d said J.B. Silvers, a former Harvard faculty member who worked for the Joint Commission, a hospital accreditation body.<\/p>\n \u201cThey may like to say competition\u2019s good, but they don\u2019t really want competition, especially when it\u2019s right in their backyard,\u201d said Silvers, now a healthcare finance professor at Case Western Reserve University in Cleveland. \u201cThat\u2019s why they\u2019ve all expanded themselves.\u201d<\/p>\n A system like Mayo can build a presence in a new market without taking on a hospital\u2019s liabilities, buildings and operating issues, said Kirat Kharode, a former hospital executive and founder of HealCo. \u201cMayo\u2019s expertise becomes an extension of the local clinical team when it\u2019s needed.\u201d<\/p>\n Robert Hackey, a Providence College health services professor, called the partnership a \u201cbranding strategy\u201d that he believes could be effective.<\/p>\n South County Hospital has been seeking a larger partner for years. This collaboration \u201cwould offer an opportunity to take advantage of a national brand with an established reputation\u201d and could be a way to \u201cdifferentiate the hospital from other local institutions with deeper pockets,\u201d Hackey said.<\/p>\n In return, the Care Network collects an undisclosed fee. The Care Network has members worldwide, but only one other in New England: Middlesex Hospital in Connecticut, which joined in 2015. In practice, Middlesex physicians can consult directly with Mayo specialists when they think it would help a patient. <\/p>\n The logic is simple, said Errol Norwitz, former chief executive of MGB\u2019s Newton-Wellesley Hospital, now executive director of a health and innovation center<\/a> at Babson College.<\/p>\n Health care is a \u201c$5.4 trillion pie, and systems want a bigger slice,\u201d Norwitz said.<\/p>\n The South County deal is \u201cquite strategic, but also a little opportunistic,\u201d said Norwitz. With a larger commercial payer mix and lucrative specialized services, like orthopedics and cardiology services, \u201cthey\u2019re cherry picking the best opportunities, as good businesses do.\u201d<\/p>\n Mayo\u2019s name has long had a thin presence in the region. It ran a lab in Andover<\/a> for several years before closing it in 2016, saying at the time it wasn\u2019t near enough to a Mayo practice. South County was selected to join the Mayo Clinic Care Network by demonstrating a commitment to quality and patient-centered care, the organization said.<\/p>\n South County, meanwhile, has been looking for a boost.<\/p>\n The 100-bed hospital has lost money on operations in each of the last three fiscal years, including $7.2 million on $237 million in revenue in fiscal 2025, with investment gains covering the shortfall, according to a bond offering document dated Sept. 22. Its share of adult inpatient discharges decreased, while Medicare\u2019s share of its patient revenue rose over the last two years. Management cites the \u201cunfavorable change in payor mix\u201d among the reasons for weaker results.<\/p>\n South County may also get \u201caccess to capital\u201d from an unidentified partner, according to the filing, which is tied to a $73 million bond financing that funds energy-plant upgrades, repays existing debt and pays to implement the Epic electronic patient records system. <\/p>\n Three healthcare executives in Rhode Island, multiple government officials, and others familiar with South County\u2019s business dealings told the Globe the hospital also has been in talks with with HumanityCorp, a Virginia-based private equity firm that has worked with Mayo to grow its business of sourcing supplies for other hospitals. In 2024, the two jointly launched Inspirity Health Partners<\/a>, which works with independent community health systems on supply chain and financial operations. <\/p>\n Auger, the Mayo spokeswoman, said HumanityCorp is not part of this specific deal with the Mayo Clinic Care Network. Representatives with HumanityCorp and Inspirity did not respond to the Globe\u2019s questions about the matter. <\/p>\n Matt Moeller, a spokesman for South County, declined to answer questions about HumanityCorp, saying, \u201cWe are only commenting on our clinical collaboration.\u201d<\/p>\n Norwitz, of Babson, said he is optimistic about bigger players disrupting health care around New England. At the same time, he said, Mayo Clinic may face some challenges in the nation\u2019s smallest state, one that has lower reimbursement rates and a more complicated landscape. <\/p>\n \u201cWhat works in Cleveland, Chicago, or Miami doesn\u2019t often work in Rhode Island,\u201d Norwitz said. \u201cIt\u2019s a smaller captive population. And, frankly, there\u2019s two large healthcare systems that are already struggling. Rhode Island, for health care, is tough.\u201d<\/p>\n Dan McGowan of the Globe staff contributed to this report.<\/p>\n Alexa Gagosz can be reached at alexa.gagosz@globe.com<\/a>. Follow her @alexagagosz<\/a> and on Instagram @AlexaGagosz<\/a>.<\/p>\n