PROVIDENCE – Lifespan has proposed merging with Care New England, in the latest effort to unite the state’s two largest health systems.
“We have submitted what we think is a very compelling, visionary and fair-minded proposal to Care New England. We believe that such a comprehensive health care system would enhance the clinical and academic missions of both institutions, resulting in better and more cost-effective care for patients in Rhode Island and the region,” Dr. Timothy J. Babineau, Lifespan president and CEO, said in a statement.
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A Lifespan spokeswoman said the only comment from the system on the matter would be Babineau’s statement.
Lifespan, with $1.97 billion in revenue and approximately 14,000 employees, is the state’s largest health system. The Miriam Hospital, Rhode Island Hospital, Newport Hospital, Hasbro Children’s Hospital, Gateway Healthcare and Bradley Hospital are under the Lifespan umbrella.
Care New England issued a statement in response to the Lifespan proposal.
“While Lifespan is among a number of local, regional and national health care organizations to be involved in this important process, the Care New England board remains engaged in a confidential and deliberative review related to the selection of a system partner. We are not at the point where we are able to make a public announcement currently, but expect we will be able to share more information soon,” said the statement from James Beardsworth, a Care New England spokesman.
Care New England is the state’s second-largest health system with $1.1 billion in revenue and approximately 8,500 employees. Care New England’s health system includes Butler, Kent, Memorial and Women & Infants hospitals, as well as Care New England Wellness Center and VNA of Care New England.
The two health systems have entertained the possibility of a merger before, most recently as 2007. The proposal even garnered a favorable review from the Federal Trade Commission before it was scuttled in 2010; the systems cited a difficult economic climate and competition from Boston hospitals.
The two organizations also sought regulatory approval to unite in 1998, withdrawing their application two years later.
It remains to be seen if the third time is the charm for the competing systems.
Patrick Quinn, executive vice president for Rhode Island for SEIU District 1199 New England, said the union opposes the merger. He said it would create too large of a system.
“A combined system would … employ close to three-quarters of the RNs in the state. That’s just not something we can agree to,” Quinn said Friday. “One seller is bad. One buyer is even worse.”
“I have yet to see a merger that didn’t result in some kind of reduction,” Quinn said.
The union represents approximately 2,300 CNE employees, including service workers and registered nurses at Butler and Women & Infants hospitals.
Lifespan’s Rhode Island Hospital union employees are represented by Teamsters Local 251 for service workers and United Nurses & Allied Professionals Local 5098. A spokesman for the Teamsters could not be reached for comment.
UNAP represents more than 2,200 registered nurses, therapists, technologists, and other allied professionals at Rhode Island Hospital. Within the CNE system, it represents registered nurses, CNAs, emergency room technicians, surgical technicians and orderlies, as well as environmental employees and ancillary staff at Kent and Memorial hospitals.
Linda McDonald, UNAP president and a registered nurse, released the following statement:
“We are hopeful that public transparency will be an integral part of Lifespan’s ‘compelling’ and ‘visionary’ proposal to merge with Care New England. Our union represents thousands of employees working within both of these systems and it is our expectation that we will be meeting with Lifespan executives about what this merger could mean for our members and how it would impact the delivery of care in Rhode Island.”
Most recently, Care New England was in talks with Southcoast Health to affiliate, but that plan was abandoned in the fall.
Lori Stabile is the PBN web editor.
