Care New England Says It Is Staying Independent, One Suitor “Stunned” By Decision
Thursday, July 07, 2022
The financially troubled Care New England hospital group says that it is rejecting offers from suitors. A number of healthcare groups have targeted the hospital group for merger or acquisition.
Care New England owns Women & Infants, Butler and Kent Hospitals. In the past few years, it has had failed mergers with Partners HealthCare, SouthCoast Health, and Lifespan.
In a press release, the hospital group stated, “Care New England’s Board of Directors has unanimously voted to pursue a strategy of operating the health system independently, with enhanced support from various clinical and operating partners to improve liquidity and operational performance. Following the decision, Care New England will work on arrangements with Brown University, its health plans, Lifespan and other local hospitals and health systems, and clinical partners.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe company that has lost hundreds of millions of dollars for the past few years added, “Today’s announcement followed months of examination and analysis of various offers and partnership structures, followed by deliberation of Care New England’s Board of Directors.
But Joshua Nemzoff, Chief Executive Officer of Stonebridge Healthcare, one of the groups looking to acquire CNE said, “We are disappointed that the Care New England (CNE) Board has decided to go in this direction to attempt to work their way out of CNE’s precarious position. Unfortunately, the leadership of CNE has led them to, once again, make the wrong decision. CNE is a critical community asset, one that deserves to be protected and preserved for the benefit of the people of Rhode Island. Given the desperate financial position the hospital is in as evidenced by dismal financial results and serious concerns raised by its own medical staff regarding the quality of care, it will take hundreds of millions of dollars to fix their problems.”
“Stonebridge Healthcare presented an offer that would provide for a $550 million investment in CNE, all the while remaining a non-profit entity. We therefore are stunned that the board of the organization, in the face of massive quality and financial concerns, is once again following its leadership team into yet another poor decision. As we have said for decades to hospital boards in similar positions, “If your leadership knew how to fix this problem, they would have done it by now.” Instead, the board has watched one failed strategy after another over the past five years. This decision is just one more on the list,” Nemzoff added.
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