Boston’s Partners HealthCare Moves Forward to Absorb Care New England, Faces Opposition in RI
Friday, January 26, 2018
Despite facing strong opposition from Brown University, U.S. Senator Sheldon Whitehouse and others, Partners HealthCare in Boston is moving forward after ten months to absorb RI-based and financially struggling Care New England. The Boston giant employs over 70,000 and has a budget of $13.5 billion -- almost 50 percent larger than the state of Rhode Island's.
As GoLocal first reported last April, CNE and Partners announced that they signed a Letter of Intent (LOI) and agreeing to negotiate exclusively.
Latest Development
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTToday’s announcement of moving forward with the deal was approved by the Boards of Directors of Care New England and Partners HealthCare this week at two separate board meetings. Both CNE and Partners hope to develop and execute the definitive agreement as soon as possible according to the companies.
As a result of today’s announcement, the existing letter of intent (LOI) and exclusivity has been extended until such a time as a definitive agreement has been executed.
Fiscal mismanagement has caused chaos on the CNE. Hundreds lost their jobs when Memorial was closed earlier this month. Moody's downgraded their bond-rating and the hospital group lost over $120 million in the past two-plus years.
Brown University Strongly Opposes Deal
In an unusual move, Brown University's President Chistina Paxson recently blasted the Partners move into RI.
"I feel strongly that letting this acquisition go forward would be wrong for Rhode Island and for Brown. Doing so is likely to lead to specialty healthcare shifting to Massachusetts, impeding access to healthcare for Rhode Islanders and especially for members of the state’s underserved communities. It also would likely increase the cost of care and reduce the ability of Rhode Islanders — consumers, businesses, healthcare workers and policy-makers — to have a voice in how our healthcare system works. If the focal point of Rhode Island healthcare shifts to Boston, excellent physicians (many of them Brown-trained) could be less likely to choose Rhode Island as a place to practice. In addition, the full economic benefits of a strong local academic health system — one that brings in federal grants, generates spin-off companies and creates new jobs in Rhode Island— would be lost, perhaps forever," said Paxson in a letter to the Brown Community.
Brown and Prospect -- the owners of RI-based Care New England teamed together to try and keep CNE RI-based.
Announcement Details
The plan to move forward with a definitive agreement announced today includes Kent Hospital in Warwick; Women & Infants Hospital of Rhode Island in Providence; the VNA of Care New England, based in Warwick; Butler Hospital in Providence; and The Providence Center in several Rhode Island locations. Under the proposal, the strong educational and research relationship that CNE has fostered with Brown University will continue to play a critical role in the healthcare landscape and its future development.
“Today’s announcement is a positive step for Rhode Island health care as well as our state’s economy,” said CNE Board Chair Charles R. Reppucci. “I would like to express my most sincere appreciation to all involved who helped us get to this important milestone. While we still have much more work ahead of us, we are one step closer to realizing a unique clinical affiliation that would place Rhode Island at the forefront of health care delivery both locally and beyond.”
Said CNE President and CEO James E. Fanale, MD, “We look forward to the opportunity this now affords and what it means for the delivery of high-quality health care for our patients, the community we serve, and our vital academic partnerships. We will continue to focus our efforts on the remaining work while doing so with perseverance that reflects the needs of our patients and the ever-changing healthcare landscape.”
“Since 2009, CNE and the Brigham have had a close clinical affiliation. By combining the talent, experience, and resources of our two organizations, we will achieve more integrated, coordinated care offered conveniently – in the right place at the right time – improving outcomes and reducing the rise in health care costs,” said Brigham Health President Betsy Nabel, MD. “Partners and Brigham Health are steadfast in our commitment to strengthen local care delivery and enhance quality for patients and communities that Care New England serves.”
“Our lengthy discussions and due diligence with CNE have strengthened our relationship and further solidified our interest in building on the successful clinical collaboration we have already developed together,” said Partners HealthCare President and CEO David Torchiana, MD. “We are also aware of and deeply respectful of the other components of the Rhode Island health care landscape and hope to find common ground and mutually beneficial pathways to improve the academic strength of the hospital programs and maximize the benefit to the Rhode Island economy.”
Related Slideshow: 7 Implications and Unintended Consequences of a Care New England and Partners Merger
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