We cast a wary eye on the proposed merger of Lifespan and Care New England into a mega medical network, the likes of which may not be replicated anywhere.
Consider the size of Rhode Island and the dominance of a merged Lifespan-Care New England. Even though medical networks elsewhere may exceed the merged entity in size, they don’t in dominance in one particular market. With the exception of a very few hospitals and treatment facilities in the state, if the merger is completed, there will be little in health care that is not influenced by Lifespan-Care New England –qualitatively, quantitatively and financially.
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Competition, including price competition, as may exist between hospitals will cease in Rhode Island. Choice will become a matter directed by the network, rather than the individual or his or her medical insurer. Therefore, it is with extreme urgency and importance that we believe all licensing bodies need to review this merger carefully. Its impact may have far more reaching ramifications than Lifespan’s merger with a Boston hospital, Care New England’s aborted efforts to join with a Boston-based medical network, or the threat of expansion in Rhode Island from for-profit facilities.
In no other industry would such a merger be tolerated. The Federal Trade Commission would quickly call foul. That does not mean, however, that there may not be benefits to the marriage. We see dangers and we see possibilities, and therefore we see a compelling need for diligent review of the proposal.
The dangers are obvious: the elimination of competition; control by one entity over most of the state’s health care delivery systems; the danger to the independent facilities that are struggling to find partners; the elimination of choice for the patient within Rhode Island.
But there is, of course, the potential for greater efficiencies and consistency, more universal access to all facilities that could potentially embrace all health care insurers, and the elimination of duplicative services.
This is a most important and difficult decision. We urge thoroughness in the review, with the only guiding principle being the welfare of patients and the health care system in Rhode Island in general.
