PROVIDENCE— Partners HealthCare and Brigham Health filed an application today with the R.I. Department of Health and R.I. Attorney General, seeking approval of Partners’ planned acquisition of Care New England, setting a 90-day expedited review in motion.
The Rhode Island Hospital Conversion Act requires such mergers to be reviewed by both state entities, normally through a 120-day process. In September, the R.I. Department of Health granted Care New England’s joint application with Partners for an expedited review of the acquisition under the R.I. Hospital Conversion Act. RIDOH Director Nicole Alexander-Scott said at the time the agency had determined CNE operated “one or more distressed hospitals,” the defunct Memorial Hospital among them, in considering the expedited review.
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Partners HealthCare also announced it will file a Notice of Material Change with the Massachusetts Health Policy Commission later this week. The Federal Trade Commission announced last week it will not challenge Partner’s acquisition of CNE.
The merger would add CNE to Brigham Health, the Partners-owned organization that operates Brigham and Women’s Hospital, Brigham and Women’s Faulkner Hospital and other entities, Care New England announced in a statement about the application. CNE said Monday that the merger will also stabilize the health care organization and enable the financially-distressed system to expand its primary care and complex care resources and address much-needed capital improvements.
“Rhode Islanders will benefit greatly from the collaboration of these two health systems,” said Care New England President and CEO Dr. James E. Fanale. “Our relationship with Brigham Health will enhance the training of physicians and inspire new research. At the same time, it strengthens our commitment to preserving access and quality of care for all Rhode Islanders.”
CNE, Partners, and Brigham Health have also finalized an agreement with Brown establishing the university’s Warren Alpert Medical School as the primary academic research and teaching institution of record for the affiliation. Brown President Christina H. Paxson will join the CNE board of directors as a voting member, and the dean of the Warren Alpert Medical School will be an ex officio member of academic and research subcommittees of that board.
Brown has a longstanding academic medical affiliation with CNE, which is home to Brown’s programs in obstetrics and gynecology and neonatology (at Women & Infants Hospital); in psychiatry (at Butler Hospital); and in family medicine (at Kent Hospital). This new relationship will sustain medical training for healthcare providers and support for biomedical research and innovation that keeps leading physicians in the state, according to Care New England.
“Together, we will be even better positioned to prepare our future physicians for the rapidly changing world of healthcare and medical innovation,” Paxson said. “We will build on our ability to compete for biomedical research grants that will guide the future of medicine and inject new investment and vibrancy into the Rhode Island economy.”
Outside observers expressed cautious reactions to the news of the merger’s progress.
Lawrence A. Aubin, Sr., chairman, Lifespan Board of Directors, expressed concern about a significant share of the state’s health care services shifting to out-of-state control.
“Like all stakeholders – both public and private – Lifespan will carefully review this application, taking into account the potential impact on Rhode Island patients, communities, health care delivery system and economy. The far-reaching consequences of an out-of-state health care provider taking control of Rhode Island’s second largest health system requires a thorough and thoughtful review by all concerned – the state, other stakeholders and us. Lifespan remains committed to high-quality, patient-centered care delivered here in Rhode Island,” Aubin said.
United Nurses and Allied Professionals, which represents more than 1,200 registered nurses, certified nursing assistants, emergency room technicians, surgical technicians, endoscopy technicians, orderlies and environmental employees at Care New England’s Kent Hospital, issued a statement expressing guarded optimism about the deal.
“UNAP’s priority is to strengthen and preserve healthcare services for Rhode Island patients and jobs for hard-working Rhode Island health professionals, said Ray Sullivan, United Nurses and Allied Professionals spokesman. “To that end, we have yet to receive any specific commitments or review any plans that speak to these critical issues from either of the parties involved in this potential transaction. Our conversations with Partners and Care New England have been thoughtful and productive to date, and we look forward to them continuing into the future,” he said.
Rob Borkowski is a PBN staff writer. Email him at Borkowski@PBN.com.
