Lifespan and Care New England Move Forward with Merger, Nurses Union Wants Details
Wednesday, September 09, 2020
Lawrence Aubin, board chair of Lifespan, and Charles Reppucci, board chair for Care New England, jointly announced on Wednesday that both boards voted Tuesday night to move forward with a letter of intent to merge Lifespan and Care New England into a single entity.
A combined Lifespan and CNE is sure to draw review by regulators -- both the RI Attorney General's office and federal review.
Both companies have been suffering through massive financial losses — much of it predating the impact of the coronavirus. The two companies have entered into merger negotiations more than five times previously over the past 20 years.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTA merger would impact upwards of 20,000 employees.
Supporters Tout "Reducing Costs"
According to the announcement, "The combined system would create a Rhode Island-based, nonprofit academic medical center with Brown University. The new system would include seven hospitals offering a full complement of specialty, women’s and children’s, and behavioral health, and visiting nurse services, research, and education. More than 23,500 employees would serve the people of Rhode Island and Southeastern New England, from prenatal care and delivery to elder care. The two organizations had collaborated on several initiatives related to the current pandemic. In early June, they announced their intent to study a more formal partnership."
“After careful consideration, there is clear recognition of the value of a more formal relationship. Overall benefit, regarding the capabilities and reach of what is possible for the health care of our local communities, has been defined with a clear, high-level vision of what could be possible,” said Care New England President and CEO James Fanale, who had previously blocked merger efforts.
“By combining the talent, experience and resources of our two organizations, we can create a national model that fully leverages the integration and coordination of care. In doing so, we are better equipped to meet market challenges and mandates to improve outcomes while reducing health care costs,” said Aubin.
“By working together, Lifespan, Care New England, and Brown University can create a fully integrated academic healthcare system for the people of Rhode Island,” said Lifespan president and CEO Timothy J. Babineau, M.D. “Combining our investment in our physicians, clinical staff, researchers, technology and other health care staff will greatly help us continue to fulfill our mission of providing world-class health care to our patients, advancing medical discoveries and serving as a vital economic engine for our state.”
“A unified academic medical center with Brown University, Lifespan, and Care New England has always been the best solution for health care in Rhode Island,” said Christina Paxson, president of Brown University. “I could not be more thrilled with this announcement. Capitalizing on the complementary strengths of our health care institutions with Brown University will make it possible to provide high-quality low-cost health care, attract and retain the best physicians, and grow our research enterprise while powering the Rhode Island economy.”
Nurses Want Details
United Nurses and Allied Professionals President Linda McDonald, RN, said in a statement, "While the idea of a merger between Lifespan and Care New England is nothing new, the challenges frontline health workers are battling certainly are."
"We welcome the opportunity to meet with both organizations and discuss a path towards developing a new health delivery system, led by Rhode Island and Kent Hospitals, that prioritizes patient care and adequately supports world-class caregivers. Our unbending priority will be the preservation of critical health services and jobs that are part of the community and provide care close to home. This level of care and the people who provide it have never been more needed then they are today," said McDonald.
"Intent is laudable, but details are what matter. We look forward to the conversation beginning anew," she added.
