Did Attorney General Peter F. Neronha make the right decision denying a proposed merger of Lifespan Corp. and Care New England Health System?

RHODE ISLAND'S TWO MAJOR HOSPITAL SYSTEMS, Lifespan Corp. and Care New England Health System, announced on Wednesday, Feb. 23, that they are withdrawing their application for a merger, after it was rejected in rulings issued recently by Attorney General Peter F. Neronha and the Federal Trade Commission. / COURTESY LIFESPAN CORP., CARE NEW ENGLAND HEALTH SYSTEMS AND BROWN UNIVERSITY
RHODE ISLAND'S TWO MAJOR HOSPITAL SYSTEMS, Lifespan Corp. and Care New England Health System, withdrew their application to the state for a merger that would have included Brown University, after it was rejected by Attorney General Peter F. Neronha and challenged in court by the Federal Trade Commission. / COURTESY LIFESPAN CORP., CARE NEW ENGLAND HEALTH SYSTEMS AND BROWN UNIVERSITY

Attorney General Peter F. Neronha on Feb. 17 denied a proposed merger between Lifespan Corp. and Care New England Health System due to concerns it would create a monopoly and drive up costs for care.

On the same day, the Federal Trade Commission announced it would file suit in federal district to block the proposed merger between the state’s two largest hospital systems, citing similar concerns.

On Feb. 23, Lifespan and Care New England withdrew their merger application and ended an exclusivity agreement that included partner Brown University that would have prevented the parties from considering other merger proposals. On that same day, a Pennsylvania company, StoneBridge Healthcare LLC, made its second bid to buy Care New England.
StoneBridge proposed a similar deal to acquire CNE in December 2020 that was quickly turned down.

CNE has yet to comment on StoneBridge’s latest proposal.

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Did Attorney General Peter F. Neronha make the right decision denying a proposed merger of Lifespan Corp. and Care New England Health System?

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