South County enters exclusive talks with Southcoast on merger

SOUTH COUNTY HOSPITAL'S board of trustees voted Tuesday to enter exclusive discussions with Southcoast Health System to explore the possibility of a merger. South County began seeking a partner two years ago and selected Southcoast after reviewing proposals submitted earlier this month from Southcoast and Care New England. / COURTESY SOUTH COUNTY HOSPITAL
SOUTH COUNTY HOSPITAL'S board of trustees voted Tuesday to enter exclusive discussions with Southcoast Health System to explore the possibility of a merger. South County began seeking a partner two years ago and selected Southcoast after reviewing proposals submitted earlier this month from Southcoast and Care New England. / COURTESY SOUTH COUNTY HOSPITAL

SOUTH KINGSTOWN – South County Hospital, the sole remaining independent hospital in Rhode Island, has entered exclusive talks with Southcoast Health System of New Bedford regarding a possible merger.

Emphasizing that the decision to enter talks is “simply the next step” in a process begun two years ago, the hospital issued a news release Wednesday stating that the South County Hospital board of trustees voted Tuesday night to work toward a letter of intent from Southcoast reflecting its initial proposal submitted earlier this month.

According to South County, the Southcoast proposal offered “a commitment to substantial local governance, resources to enhance services in the community, and the development of a system that can preserve existing patterns of care in Rhode Island.”

In February 2013, South County’s board authorized hospital President and CEO Louis Giancola to reach out to Lawrence & Memorial Hospital in New London, Southcoast in Massachusetts, and the Rhode Island networks Lifespan and Care New England to find a potential partner. All the systems except Lawrence & Memorial expressed interest and entered discussions with South County.

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In December 2013, the board refined its requirements for a merger and asked for proposals from the three systems under consideration by Feb. 1. South County Hospital received two submissions, one from Care New England and the other from Southcoast.

After reviewing both proposals, the board has opted to move into exclusive discussions with Southcoast, a regional, community-based, nonprofit with more than 40 locations in Rhode Island and Southeastern Massachusetts including St. Luke’s, Charlton Memorial and Tobey Hospitals; the Southcoast Visiting Nurse Association; Southcoast Centers for Cancer Care; Southcoast Urgent Care; and 500 primary care and specialty providers.

The release announcing the board’s decision said its discussions with Southcoast would be “the next step in a process to explore a relationship that is in the best interest of the community.”

South County had previously told Providence Business News that a merger could realistically be executed and approved by state regulators by the first half of 2015, once a partner had been selected.

A series of open forums will be held for any South County staff to voice questions they would like the board to consider in its discussions with Southcoast, the hospital said.

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