Is Rhode Island’s Healthcare System Near Collapse?
Wednesday, October 18, 2017
Here are some recent developments in the Rhode Island healthcare system:
Care New England announced on Tuesday that it is closing Memorial Hospital in Pawtucket after its deal with Prime Healthcare collapsed.
Prime Healthcare owns Landmark Hospital in Woonsocket. Presently, Prime is being investigated by the Department of Justice.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTCare New England has lost $117 million combined in the past two fiscal years.
Care New England’s proposed sale to Boston-based Partners HealthCare is in question and the failure to sell off the money-losing Memorial only puts the deal at greater risk. In the past year, Memorial lost $23 million. "We agree with and support the steps that Care New England has announced today. We look forward to continuing our due diligence process, which will now include evaluating the impact that Care New England’s new plans for Memorial will have on its overall turnaround plan," said Rich Copp, Vice President of Communications of Partners HealthCare in an email to GoLocal on Tuesday.
Lifespan -- the state’s largest healthcare group -- is trying to reverse its own financial challenges. In 2015, Lifespan lost $9.5 million. In 2016, the financial losses jumped to $29 million.
St. Joseph Health Services pension fund went into receivership and faces a shortfall of tens of millions and over 2,700 pensioners face cuts to their pensions of potentially as much as 40 percent.
VNA of Rhode Island, one of Rhode Island’s oldest home care and hospice providers, based in Warwick, Rhode Island, announced their closure by the end of the calendar year.
Nearly every hospital is impacted, thousands of employees are at risk, and pensions are failing.
This is all before changes to Obamacare have taken place. On Friday, President Donald Trump signed an Executive Order that directs the Department of Health and Human Services, the Treasury, and the Department of Labor to “take action to increase competition, increase choice, and increase access to lower-priced, high-quality healthcare options,” said the President before signing the document. The plan will take the first steps to expand choices and alternatives to Obamacare plans and increase competition to bring down the costs for consumers.
The implication of Trump's actions on Rhode Island’s distressed healthcare system is unknown.
Leaders Caught Off Guard?
State officials seem to be caught by the surprise news by CNE's board to close Memorial. Governor Gina Raimondo issued an audio clip to the news, but her office refused to respond to written questions.
Pawtucket Mayor Don Grebien, who is facing a slew of challenges, issued a statement that said in part, “I am extremely disappointed in this decision by Care New England to abandon our community hospital during their transactions, putting their agreement with Partners above the one with Prime Healthcare. I think closing Memorial could have been avoided, rather than giving up on an urban community and the Blackstone Valley. Our community needs are important and should not be dismissed for profit. Memorial Hospital provides access to quality care for our residents and is one of our largest employers.”
The bad news for Pawtucket was only the latest. Recently, the much-heralded Gamm Theatre announced that it was moving from Pawtucket to Warwick.
GoLocal first reported that Hasbro, which is headquartered in Pawtucket, is looking to consolidate its offices in Rhode Island into one campus, potentially in Providence. And, the proposal for a new stadium for the PawSox is now hitting some significant challenges in the legislative review process.
According to CNE, Memorial employs 827 employees — 603 full-time equivalents. The implication for Pawtucket and the Blackstone Valley is significant.
Senate President Dominick Ruggerio refused to comment. But, Speaker Nick Mattiello said, “I am disappointed to learn of the decision between Care New England and Prime Healthcare regarding Memorial Hospital. I fully anticipate a thorough review by the director of the Department of Health to follow the Certificate of Need process, which will produce a final determination.”
Implication for Workers
The collapse of the deal with Prime and the decision by the Board of Directors of CNE sparked an immediate response from United Nurses and Allied Professionals General Counsel Chris Callaci.
He said in a statement on Tuesday, "We are deeply saddened by Care New England's decision to turn its back on Blackstone Valley families and the dedicated, hard-working health professionals of Memorial Hospital.”
“Our immediate efforts will focus on assisting our members in transitioning through this difficult process and ensure that Memorial patients continue to receive the quality care that has been the hallmark of this institution for generations,” said Callaci.
The one bright note may be Prospect — owners of CharterCARE who offered to try and salvage CNE. In a statement to GoLocal, “We recognize that Care New England is now faced with difficult decisions as it looks to the future.”
“CharterCARE Health Partners, and its hospitals, stand ready as a viable and quality partner to work with CNE to preserve local access to key healthcare services and to keep healthcare jobs in Rhode Island,” said Otis Brown, Vice President for CharterCARE.
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