Lifespan Announces Opposition to Partners HealthCare Acquisition of Care New England UPDATED
Thursday, April 25, 2019
Lifespan’s board of directors and chief executive officer announced Wednesday that they strongly oppose the proposed acquisition of Care New England by Partners HealthCare.
In the announcement, Lifespan Board of Directors Chairman Lawrence Aubin, said, “Allowing such an acquisition to move forward would have devastating consequences for Rhode Island and its health care delivery system, now and for years to come.”
Lifespan cited that Partners' acquisition of Rhode Island’s second largest hospital group could have a significant adverse impact on Rhode Island.
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"In the past, I have advocated for an integrated healthcare solution that brings Care New England and Lifespan together with Brown to create a unified academic medical center in Rhode Island. However, multiple previous attempts to realize this vision have failed. While I remain committed to the vision of a thriving academic medical center, it's uncertain that another attempt involving Lifespan and Care New England would be successful at present. Brigham's financial strength, its standing as a world-class medical center, and its stated commitment to locally-provided care offer an attractive alternative to a "local" solution. In the end, Rhode Island's Department of health and Attorney General will have to decide what's in the best interest of Rhode islanders. Brown remains strongly dedicated to the goals of providing the highest quality healthcare and exceptional medical training, enhanced opportunities for research, and biomedical innovation that fuels economic development in Rhode Island."
Timothy J. Babineau, M.D., President and Chief Executive Officer of Lifespan added, “It is essential that Rhode Island have a locally controlled academic medical center that can attract top specialists and primary care physicians working for the people of Rhode Island. The proposed acquisition places that at great risk.”
Specifically, Lifespan cited in their opposition:
- Higher cost of health care for Rhode Islanders, based on the higher reimbursement rates commanded by Partners HealthCare and lack of regulatory oversight by the Rhode Island Office of the Health Insurance Commissioner (OHIC) on those rates.
A recent report by OHIC, states, ”Economic literature suggests that hospital consolidation is often associated with higher rates, because the hospital system can take an ‘all-or-nothing’ bargaining approach. However, this mechanism is weaker if the acquired hospital is geographically distant from the system hospitals, because it is more difficult to link the bargaining strategy. In order for a system to use its market power as leverage for higher rates, at a minimum, there must be common payers (insurers) and customers (employers or individuals) between the system hospitals and the newly acquired hospitals.
- Lifespan also says the deal will adversely impact the ability to attract the best medical experts to Rhode Island due to loss of necessary patient volumes.
- For patients, there will be the negative impact of having to travel out of the state for certain care that they currently are able to receive in Rhode Island.
- Lifespan also cites the loss of health care jobs will be moved from Rhode Island to Boston.
- Critical health care decisions that affect all Rhode Islanders will also move to Boston
“With the recent release of the Change of Effective Control [posted to the DOH website in March], we now know that Partners intends to make no investment in CNE – pay $0 for CNE and commit no capital investment, just a takeover of community assets that were built by Rhode Islanders for Rhode Islanders. Loss of Care New England, a community asset, and the decision to turn these assets over to Boston at zero cost is a travesty,” Aubin adds.
The OHIC report also found that:
Partners’ Mass General and Brigham and Women’s Hospitals are among the highest priced general acute care hospitals in Massachusetts;
This proposed takeover already contributed to the closing of Memorial Hospital; and
Partners physician organizations are up to 50 percent more expensive than Rhode Island commercial physician fee schedules.
Lifespan is a launching a public affairs campaign www.ProtectRIHealthCare.org
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