By Andy Metzger

State House News Service

BOSTON -- A proposed hospital acquisition by the state's largest private employer, Partners Health Care, was referred Wednesday to Attorney General Martha Coakley as the state agency overseeing the health-care market determined it would increase health spending, reduce competition and result in increased premiums.

The final report by the Health Policy Commission puts Partners' acquisition of South Shore Hospital and Harbor Medical Associates into a 30-day holding period before the Weymouth institution can join Massachusetts General Hospital, McLean and Brigham and Women's hospitals in the Partners organization.

The commission voted unanimously. Through a spokesman, Coakley's office said it had no comment.

Commission Chairman Stuart Altman said Coakley can block the merger, an action the hospitals could overturn in court, and he raised the specter of anti-trust action.

"Don't rule out the Justice Department. This is also a federal anti-trust law. So there's a state anti-trust law, and then there's a federal anti-trust law," Altman told reporters after the meeting.

HPC director of policy for market performance Karen Tseng said the merger would cause a $23 million increase in total medical expenses, cost the three largest health-care payers an additional $15.8 million, and said a shift in referrals will result in increases of $7.4 million to $10.6 million. On the other hand, according to Tseng, the merger's efficiencies would result in savings of $6.6 million.

She said Partners had made "unsubstantiated" claims of greater savings, some of which were "inconsistent with objective data."

"As groups get bigger they have used their power of bigness to generate higher rates," Altman said. He said, "Our goal is to get total medical expenditures down."

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Health-care deal sent to AG amid cost concerns