PROVIDENCE – For the second time, the Federal Trade Commission has given a green light to the proposed merger between Lifespan and Care New England, which was first announced in July of last year but has yet to make it through the state regulatory process.
The deal is subject to approval by the R.I. Department of Health and the state Office of the Attorney General – which responded to the merger plan by teaming up to establish a brand-new, joint review process for all such deals, as well as hospital sales – as well as the FTC.
The federal commission’s authority is over whether mergers violate federal antitrust standards. If the FTC believes a merger may substantially lessen competition in a given marketplace, it can block the transaction while it pursues a deeper investigation.
The FTC initially approved the Lifespan-Care New England deal last December. But that approval was good only for one year, so the two health systems had to reapply.
At the state level, both parties “are continuing to work with some issues with the attorney general’s office and the Department of Health,” Lifespan spokeswoman Linda Shelton said.
“We are hopeful that we will resolve those soon and be able to file the full application in early 2009,” Shelton said, adding that part of the delay now is that “enough time has elapsed that we have to update the information” in the application.
In a joint news release, Lifespan and Care New England said that “with the state’s economy falling deeper into recession,” both their boards of directors “are more committed than ever to the importance of this transaction for the health care needs of the people of Rhode Island and to the state’s economy.”
“We feel the FTC decision validates our view that the marketplace in which we operate is regional, beyond Rhode Island’s borders,” said George A. Vecchione, president and CEO of Lifespan.
“This merger is even more important than ever, given the seriousness of the economic crisis and the uncertainty as to how long it will last,” Vecchione continued. “Lifespan and Care New England, as one system, will be better positioned to continue to provide high-quality care and to generate new jobs.”
John J. Hynes, president and CEO of Care New England, added that the proposed merger would strengthen both organizations “in an increasingly competitive region.”
“The proposed merger will enhance our clinical, research and teaching efforts that are so crucial to the long-term health of our patients and our economy,” he added.
Lifespan is a nonprofit health care system that includes three teaching hospitals of The Warren Alpert Medical School of Brown University: Rhode Island Hospital and its Hasbro Children’s Hospital; The Miriam Hospital; and Bradley Hospital, as well as Newport Hospital and affiliated clinical and research facilities. For more information, go to www.Lifespan.org.
Care New England includes two Brown teaching hospitals – Butler Hospital and Women & Infants Hospital – as well as Kent Hospital, Care New England Home Health, and the Care New England Wellness Center. For more information, go to www.CareNewEngland.org.
