PROVIDENCE – The merger proposal filed by the Lifespan and Care New England hospital systems is “inadequate for processing,” state officials said today in rejecting the application.
The merger of the two nonprofit health care systems was approved by the Federal Trade Commission in December. (READ MORE) But the state Health Department and Attorney General’s Office also must approve such transactions under the terms of the R.I. Hospital Conversions Act, a 1997 law that provides for close government scrutiny of any proposed change in ownership of a licensed hospital.
The state’s primary concern is that Lifespan and CNE refused to sign the “attestation clause” of the merger application, Dr. David R. Gifford, director of the R.I. Department of Health, and Attorney General Patrick C. Lynch said in a statement this evening.
Instead of signing that clause – used by the Health Department for at least a decade as part of its Certificate of Effective Control application review process – Lifespan and CNE drafted their own attestation clause, the state officials said.
Also at issue, Lynch and Gifford said, are determining the confidentiality of the merger application’s peer review process and ensuring that the Health Department and Attorney General’s Office have complete access to all of Lifespan’s and CNE’s documents.
“This proposal would mean a substantial change in the healthcare landscape of our state,” Gifford said in a statement today.
“Before the merger application is reviewed, it is essential that the application be pre-certified under oath to be complete, accurate and true. This will allow us to assess whether the merger will address issues of prevention, access to care, health disparities and utilization of health information technology.”
Lynch agreed, saying: “On an issue that’s as critical as attesting to the truthfulness of the information contained in an application that is – to put it mildly – voluminous, not using the merger application’s existing clause is not acceptable.
“Determining if this proposal ultimately complies with Rhode Island law and benefits our citizens’ access to health care is as important a mission as our office has ever undertaken in the civil arena. Therefore, it is crucial that we receive a completed application from the parties, as well as all of the information that the Hospital Conversions Act requires us to review. As of this date, we do not have either.”
The law gives applicants 30 days to correct any deficiencies found during the state agencies’ initial review. Once the Department of Health and Attorney General’s Office have determined an application to be acceptable, the law gives the agencies 180 days to review the application, hold public hearings and make their decision. (READ MORE)
Additional information about the health-system merger application and the regulation of health care in Rhode Island is available from the R.I. Department of Health at www.health.ri.gov.
