21 to Watch in RI in 2021: Tim Babineau and James Fanale

Wednesday, December 30, 2020

GoLocalProv News Team

 

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L-R Tim Babineau of Lifespan and James Fanale of CNE

Healthcare is one of the biggest business sectors in Rhode Island and it potentially faces its biggest change in history in 2021.

The ongoing merger negotiation between the state's largest and second-largest hospital groups could create a mega-healthcare corporation.

The merger discussion is being driven by Lifespan’s CEO Timothy Babineau and Care New England’s James Fanale — two rivals who are now working urgently to complete a deal before the end of the fiscal year — September 30, 2021.

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Care New England has been in economic chaos for years — it has lost more than $150 million over the past five years, closed Pawtucket Memorial Hospital laying off nearly 1,000 employees and failing to make needed payments for pension funds.

As GoLocal unveiled in December, the pension liability including this year’s yet-to-be-made estimated $30 million payment will drive the total unfunded gap to more than $160 million.

And over the past two years, the gap has grown from $89,880,243 to $131,513,347 - which is a 46% increase from fiscal year 2018 to 2020.

Questions are emerging if a Lifespan-CNE merger would be legal and pass federal regulatory review. The Federal Trade Commission has moved to block a number of potential mergers around the country that would create hospital groups with 50% market share or more. A Lifespan-CNE merger could create an entity that some estimate to be upwards of 80% market share - a de facto, monopoly.

If 2021 was the year of the pandemic, then 2021 could be the year of the healthcare mega-merger in Rhode Island. 

 

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