PROVIDENCE – Lifespan Corp., the state’s largest hospital system, is in the process of affiliating with Coastal Medical Inc., a large primary care practice with 20 offices in Rhode Island, the health systems announced Thursday.
The two networks say they have signed a letter of intent and expect to finalize an agreement in the next six months.
Details of the deal, including whether Lifespan will acquire or merge with Coastal Medical, have not been worked out yet, said Dr. Alan Kurose, president and CEO of Coastal Medical.
The affiliation will link a foundation of primary care to the specialty care and other services that Lifespan already provides, leaders of the two sides said.
“Lifespan believes there is great benefit in better unifying health care services in Rhode Island,” Dr. Timothy J. Babineau, Lifespan’s President and CEO, said in a statement. “Coastal Medical has set the standard for excellence in primary care nationally and we look forward to bringing that expertise to all of the patients Lifespan serves.”
Kurose said the move is a “tremendous opportunity” to “reach more patients and have a larger positive impact on the health care system.”
Asked whether the partnership will be part of efforts to bring the struggling hospital operator back into the black, Babineau said the primary goal is not financial but instead focused on improving patient-centered care.
With more than 15,000 employees, Lifespan is the state’s largest employer. It operates Rhode Island Hospital, The Miriam Hospital, Newport Hospital and Bradley Hospital, along with a number of outpatient clinics. Lifespan also includes Gateway Healthcare, a behavioral health care provider.
Coastal Medical, an accountable care organization headquartered in Providence, employs more than 500. It is a primary care practice that serve 120,000 patients.
Kurose framed the partnership as a way to create a “more coherent experience of care” from primary care practitioners to specialists and hospital staff. Neither Coastal Medical nor Lifespan patients will see changes in their primary care doctors under the deal.
The tentative agreement between the two networks comes less than a year after Lifespan revisited talks with Care New England Health System and Brown University in an attempt to create a unified in-state health system.
Gov. Gina M. Raimondo initiated the discussions during the summer after intervening in the acquisition process between CNE and Brigham Health, owned by Massachusetts-based Partners Healthcare.
The effort was unsuccessful, and CNE pulled out of the talks after about six weeks. Raimondo’s intervention also put a stop to CNE’s merger with Brigham.
Despite years of financial struggles, CNE ended fiscal year 2019 with $3.8 million in operating income, while Lifespan reported a $23 million operating loss.
Lifespan released its year-end numbers with a promise from Babineau to post $1 million in operating income for fiscal year 2020. A voluntary early retirement plan for some employees goes into effect next month, and the health system is working with a consulting firm on restructuring its expenses.
Both organization leaders expressed confidence in the success of the partnership, which has been in discussion since April and is expected to be finalized in the next six months.
Elizabeth Graham is a PBN staff writer. You may reach her at Graham@PBN.com.
With reports from PBN staff writer Nancy Lavin.
