Home Industries Health Services Lifespan rebranding to Brown University Health under new agreements

Lifespan rebranding to Brown University Health under new agreements

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Katie Castellani

-

06/20/2024

RI-Hospital-1-696x385-1 — LIFESPAN CORP. will change its name to Brown University Health, or Brown Health for short, under an expanded affiliation agreement announced Thursday. ./ COURTESY RHODE ISLAND HOSPITAL

PROVIDENCE – The state’s largest health system is getting a new name. Under an expanded affiliation agreement, Brown University and Lifespan Corp. announced Thursday that the health system this year will change its name to Brown University Health, or Brown Health for short. A rebranding effort will take place over the next several months, aimed

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PROVIDENCE – The state’s largest health system is getting a new name. Under an expanded affiliation agreement, Brown University and Lifespan Corp. announced Thursday that the health system this year will change its name to Brown University Health, or Brown Health for short. A rebranding effort will take place over the next several months, aimed to help recruit and retain doctors and reflect the institutions' deeper alignment. The name change also includes financial agreements between Lifespan and Brown, which will both continue to operate as separate and independent organizations. Over seven years, Brown will invest $150 million into Lifespan, split into annual payments ranging from $15 million to $25 million. After that, Lifespan plans to invest $15 million annually to support Brown’s Warren Alpert Medical School’s education and research efforts. John Fernandez, CEO and president of Lifespan, said while it is a difficult time in health care it’s more important than ever for the health system to strengthen between patient care and ties with Brown as its academic partner. “We're excited to move forward with robust plans to expand our facilities and improve our systems and technologies to be able to compete with new entrants to the health delivery market, such as national chains,” Fernandez said. “This enhanced relationship with Brown is one part of the solution to ensure that our health system can continue to offer the people of Rhode Island the opportunity to access high-quality treatment close to home.” Christina Paxson, president of Brown, said the agreements advance its goals to ensure the university’s medical students, residents and fellows are learning from outstanding clinicians with opportunities to train using the latest technology and techniques. “Brown and Lifespan are taking important steps to strengthen our longstanding affiliation with the goal of improving the health of families in Rhode Island, through both medical advances in care and state-of-the-art medical training for the next generation of physicians,” Paxson said. “These agreements also strengthen the work we have been doing for several years to integrate research and break down barriers for physicians and scientists who translate discoveries in the lab into treatments benefiting patients.” Thursday's announcement comes weeks after Peter Markell, Lifespan’s chief financial officer, said the institutions reached a definitive agreement, which includes an amended and restated affiliation agreement; an investment participation agreement; a trademark license agreement and bylaw revisions. These agreements also follow votes by the Lifespan board of directors and the Corporation of Brown, which each approved a non-binding term sheet directing leadership to negotiate an extension and expansion of the organizations’ affiliation agreements. Fernandez also said that the health care industry will likely face challenges for the foreseeable future like inflation, labor shortages and low reimbursement rates. For Lifespan, many years without adequate funding has hampered its ability to keep up with needed infrastructure investments, he added. But he said the agreements offer financial investments to address those challenges and serve as a critical step to strengthening the state’s health care delivery and research system. “It is critical that facilities, systems and technologies are not only modernized but are cutting edge in order to be able to compete with out-of-state companies, new entrants to the market and national providers, particularly for-profit businesses,” Fernandez said. “Equally important is investing in workforce development to retain existing first-rate clinicians and employees and to recruit top talent.” The agreements affect four areas: name, financial investments, academics and governance New Name Lifespan will continue to use its name in all business operations until its new name officially launches. The institutions expect that will be later this year, with the full rebrand taking several years to complete. The rebranding will help Lifespan recruit and retain physicians, grow research as a recognized academic medical center and maintain a medical education program. “The new agreements move the relationship between Brown and Lifespan to a more contemporary model in line with other affiliation agreements we see across the country, where the academic-medical affiliation is reflected through a shared name between the hospital system and academic institution,” Paxson said. Investments Along with the $150 million investment to Lifespan over seven years, Brown’s Investment Office will manage $600 million to $800 million of Lifespan’s investment portfolio. Around $200 million of the portfolio is expected to be phased in per year over four years, according to a news release. “Lifespan and Brown have a vested interest in securing and furthering the academic mission of the state’s largest health care system, which is critically important to both organizations’ continued long-term success,” Fernandez said. “Solid financial footing is needed now to address facilities and other infrastructure needs across the Lifespan system, and our longer-term support will in turn help to further recruit and retain talented academic and clinical leaders as department chairs for the Warren Alpert Medical School.” Examples of activities the funds will be used for include:

Recruiting physicians to improve access to care for Rhode Islanders and attract more patients to Rhode Island for care. Increasing out-of-state patient services revenue will help Lifespan offset local costs as well as increase the number of health care jobs for Rhode Islanders
Investing in facilities for training physicians and conducting biomedical research
Continued investments in programs that improve the health, welfare and economy of underserved communities locally. The Lifespan Community Health Institute offers hundreds of programs, events and community service activities serving tens of thousands of southern New England residents each year
Expanding Lifespan’s electronic health record, EPIC, to allow patients, physicians and medical students to view records for primary care, hospital, specialty, laboratory and imaging services in one portal. This allows for more coordinated care from providers and improves the accessibility of health data that is approved for use in research

“The investments from Brown are critical and will help Lifespan address its immediate challenges,” Fernandez said. “Lifespan will still need to continuously improve its operations while expanding and diversifying its revenue opportunities and work toward creating a more balanced reimbursement structure on par with those of neighboring states.” Academics and Governance The agreements set the dean of the Warren Alpert Medical School will serve as Lifespan’s chief academic officers. Also, the president of Brown and dean of the medical school will become ex officio members of Lifespan’s board of directors. The agreements also formalize several terms about academic affiliations

Rhode Island Hospital will continue to be formally designated as the principal teaching hospital of the Warren Alpert Medical School. The Miriam and Bradley hospitals, Lifespan’s other teaching hospitals, will continue to be designated as major teaching affiliates. Also, Newport Hospital will be a community affiliate
The Warren Alpert Medical School will be the exclusive medical school affiliate of Lifespan. Also, Lifespan will continue to be home to 11 of the medical school’s clinical departments. Family medicine, OBGYN and psychiatry academic and clinical chairs will remain at Care New England Health System’s Kent, Women & Infants and Butler Hospitals. Brown will also maintain academic affiliation agreements with Care New England, the Providence V.A. Health System, Hope Health and Brown Physicians, Inc. for teaching, faculty development and research.
Lifespan will continue to be affiliated with other institutions like the University of Rhode Island, Rhode Island College and Community College of Rhode Island for clinical education programs that are not offered at Brown

Leaders from Lifespan and Brown say the agreements reflect a shared commitment to aligning the organizations’ strengths and boosting connections for delivering health care, medical training and biomedical research. “We are confident that this comprehensive, collaborative approach and mutual commitment to serving the needs of the people of Rhode Island will bring value to this community and help build a healthier, more vibrant state,” Fernandez said. Lifespan and Brown are not merging, and don’t plan to purchase any part of the other, meaning the agreements didn’t require regulatory or legislative approval. Leaders from each institution noted they consulted the R.I. Department of Health and Attorney General Peter F. Neronha’s office.
Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.