PROVIDENCE – The proposed merger between Rhode Island’s largest hospital companies is moving to the next stage of the review process, after Lifespan Corp. and Care New England Health System submitted a revised Hospital Conversion Act application to address follow-up questions posed by government regulators, following the submission of their initial application in April.
In a joint statement, Lifespan and Care New England said the organizations submitted a revised application on Friday to address questions from the R.I. Department of Health and the R.I. Office of the Attorney General. The two companies also said they’ve submitted answers to the Federal Trade Commission’s “most pressing questions,” filing “thousands of pages of information” with the federal regulator, but will continue to address additional questions from the agency “over the coming weeks.”
The two companies did not offer an expected timeline or target day for final approval.
Providence Business News reached out to the R.I. Office of the Attorney General seeking a copy of the revised application, however the department said that the application is not a public document until it is deemed complete by it and the state Department of Health.
Lifespan and Care New England first announced in February that they reached a definitive agreement to merge into an integrated health system, both arguing that a consolidated organization would be better positioned to handle the financial challenges currently facing the health care industry as a result of labor shortages and the impact of the pandemic. The proposal got the support of former Gov. Gina M. Raimondo.
“A stronger financial footing through greater economies of scale and efficiency will allow us to focus on mission, including continuing to invest in our communities to improve health status and health care access,” Lifespan and Care New England said in a joint announcement about the latest progress in the merger process.
Dr. James E. Fanale, president and CEO of Care New England, said he’s happy with how the application process is moving forward.
“We are pleased that the process has continued on track and look forward to continued dialogue with our regulators to ensure that they have all the necessary information to review and ultimately approve the proposed transaction,” Fanale said. “With everything going on in the world and in healthcare today, we must create the most resilient system as we can. ”
Not only would the merger improve resiliency, but it would lead to better, more affordable and more equitable hospital care, said Dr. Timothy J. Babineau, president and CEO of Lifespan.
“Our first priority is to ensure that the affiliation moves forward in a way that improves healthcare in our state for patients, creating a system meeting the needs of all in our community, across race, language, and income,” Babineau said. “The new entity will enhance our ability to keep patients in Rhode Island for their care and continue to attract federal research dollars into Rhode Island in an even more competitive environment.”
A key component of the merger proposal is the role of Brown University’s Warren Alpert Medical School, with the university providing a minimum of $125 million over five years to support the new system, providing a governing board for the unified entity while integrating the school’s medical training into the hospital system.
Lifespan, which has about 16,500 employees, operates Rhode Island Hospital, The Miriam Hospital, Hasbro Children’s Hospital, Newport Hospital, and Bradley Hospital. Care New England, which has roughly 8,000 employees, operates Women & Infants Hospital, Kent Hospital, and Butler Hospital.
Marc Larocque is a PBN staff writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockPBN.
