UPDATED: Care New England Ends Negotiations with Brown and Lifespan, Can They Survive Financially?
Wednesday, July 17, 2019
Care New England’s Board Chair Charles Reppucci and CEO James E. Fanale, MD announced they have broken off negotiations with both Brown University and Lifespan.
Just weeks ago, Partners HealthCare of Boston ended their effort to purchase Care New England.
The embattled Care New England has lost approximately $130 million, closed Memorial Hospital in Pawtucket, and laid-off thousands.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe joint statement states:
Today, after careful deliberation, the CNE Board voted to formally withdraw from tri-party discussions with Lifespan and Brown University. CNE was an active and willing participant, meeting in good faith, as requested by Governor Raimondo. The discussions have been collaborative, mutually respectful, and held honestly and transparently. We would like to thank the Governor’s Office, The Rhode Island Foundation, and The Partnership for Rhode Island for their leadership throughout this important process.
As those responsible for the fiduciary oversight of CNE, the Board has concluded that it is in the best interest of CNE and the community it serves to end the tri-party discussions. In making this decision, the Board took into account many considerations, including but not limited to, capital requirements and financial stability of the combined system, community need, anti-trust considerations, organizational stability, and implementation risks.
CNE has implemented a remarkable turnaround with significant improvements. With this in mind, it is the respectful position of CNE to step back and continue on the dedicated path of improving quality, service, and access to health care for our patients.
The Board, leadership, and dedicated staff of CNE are fully prepared for and look forward to the opportunities ahead for our system. We have exciting growth plans, clinical development opportunities, and plans for capital improvements. We also look forward to expanding our collaboration with Lifespan and Brown University on new clinical and academic opportunities. We are confident and optimistic about the future and our place as a leading health care institution in Rhode Island. As we move forward in our mission, we will continue to serve our patients with honesty, integrity, and clinical excellence.
Governor Gina Raimondo issued the following statement after the announcement:
“I’m disappointed that the parties were not able to come to an agreement. I continue to believe that a locally-run, academic medical center is what’s in the best interest of Rhode Island. I have encouraged the parties to keep an open mind, remain open to future discussions, and to continue to pursue expanded collaboration that could pave the way to further integration down the road.”
Lawrence A. Aubin, chairman, Lifespan board of directors and Timothy, J. Babineau, MD, president and chief executive officer issued the following statement:
While we respect the decision of Care New England’s board of directors, we are extremely disappointed that they are no longer willing to participate in creating a compelling vision for the future of health care in Rhode Island.
We believe that a partnership with Lifespan, Care New England and Brown University remains the very best approach to ensure high quality, affordable health care and economic vitality for our state. We were optimistic that achieving a complete and unified academic medical center for the people of Rhode Island could become a reality and were working in good faith to achieve that goal.
The Lifespan board of directors would like to thank Governor Raimondo for her leadership, Brown University, the Rhode Island Foundation and The Partnership for Rhode Island for their support of this important vision.
This story was first published 7/16/19 9:58 AM
