Whitehouse warns hospital consolidation could hurt innovation, economy

U.S. SEN. SHELDON Whitehouse, left, and Lifespan primary investigator Dr. Peter J. Quesenberry discuss his team’s research at Lifespan’s research lab at 1 Hoppin St. in Providence. / PBN PHOTO/ROB BORKOWSKI
U.S. SEN. SHELDON Whitehouse, left, and Lifespan primary investigator Dr. Peter J. Quesenberry discuss his team’s research at Lifespan’s research lab at 1 Hoppin St. in Providence. / PBN PHOTO/ROB BORKOWSKI

PROVIDENCE ­– As U.S. Sen. Sheldon Whitehouse spoke to Lifespan researchers celebrating a $10 million stem cell biology research grant Aug. 29, he warned hospital consolidation could stifle innovation and shrink the economy.

“I think we are helped in getting these results in Rhode Island by having control over our local hospital systems,” Whitehouse said.

Whitehouse referenced the bank mergers in the 1990s and 2000s that resulted in bank headquarters moved out of state, layoffs and job losses from the infrastructure that served and depended on the consolidated banks.

The senator’s sentiment comes amidst R.I.-based Care New England’s intent to join Massachusetts-based Partners HealthCare, announced in April. At the time, Lifespan CEO Dr. Timothy Babineau reiterated the company’s interest in acquiring Care New England.

- Advertisement -

“What I’m worried about is that we’re at a tipping point of the scales with our health care system,” Whitehouse said, where Lifespan, accustomed to its status as the state’s largest health care company, will chase its own merger with out-of-state firms, leading to the elimination of state-level hospital ownership.

David Levesque, spokesman for Lifespan, said the company won’t be so easily persuaded onto that path. In fact, he said, Lifespan’s leadership shares Whitehouse’s concern.

“Senator Whitehouse’s comments echoed many of the concerns Lifespan and other local leaders have expressed regarding the entry of Partners Healthcare into the Rhode Island market. Rhode Islanders already have access to world-class health care close to home within the Lifespan system. The challenge here – as well as elsewhere in the country – is making the delivery of health care financially viable for health care organizations – a particular challenge here in Rhode Island.

“Lifespan remains absolutely committed to our mission of Delivering Health with Care. If Lifespan were to consider out-of-state partners – such as our strategic partnership with the Dana Farber Cancer Institute – it would be as a consequence of seeking to improve the care we deliver to our patients, and not as a consequence of increased local or regional competition.”

Whitehouse said he hopes people examining the Care New England/Partners merger will take the overall economic and innovative health of the state into account while assessing whether it should move forward.

Those looking at the proposed merger include the Attorney General Peter F. Kilmartin and the R.I. Department of Health. Whitehouse said there may also be legislative remedies that would limit the ability of out-of-state interests to take over local hospitals.

Whitehouse said he doesn’t have a preferred solution to his worry.

“I can observe that a Care New England-Lifespan merger would keep all of both hospital systems in Rhode Island,” Whitehouse said.

Rob Borkowski is a PBN staff writer. Email him at Borkowski@PBN.com.

No posts to display