RI State, Health Care Leaders Respond To Blocked Hospital Merger

PROVIDENCE, RI — The proposed merger between health care giants Lifespan and Care New England will not be allowed to move forward, Attorney General Peter Neronha announced Thursday. In denying the application, the attorney general voiced concerns about reduced competition, financial feasibility and quality of care for patients.

"Eliminating this competition will have the same effects here as seen across the country following mergers of this size: rising healthcare costs, lower quality, and reduced access," Neronha said in part. "The Parties simply have not demonstrated why these results would not happen here and how they would be able to deliver on promised benefits that would outweigh these risks."

In the wake of the AG's announcement, health care and state leaders had a lot to say. Their statements are listed below.

The UNAP strongly disagrees with the Attorney General’s rejection of the hospital merger. It is clear that Care New England is in dire financial straits, and in no financial condition to sustain their operations as they currently are. The merger of these two groups could be our last, best chance to ensure a healthy, stable, not-for-profit healthcare system that stays under Rhode Island control.

Alarmingly, this decision has now opened the door for three more Rhode Island hospitals – Women and Infants, Kent and Butler – to be sold to an out of state, for-profit corporation who will almost certainly put shareholder profits ahead of quality patient care, as we’ve seen time and again. Attorney General Neronha himself has browbeaten modern day robber barons like Prospect Medical Holdings, owner of Roger Williams Medical Center and Our Lady of Fatima Hospital, saying ‘those who claimed to care about healthcare here in Rhode Island and around the country cared more – orders of magnitude more – about lining their own pockets than about the people they purported to serve.’ The people of Rhode Island can’t afford another buyer who wants to come in and suck every last nickel out of these hospitals in the interest of making a bigger profit for shareholders.

State leaders shot down the not-for-profit Partners/Care New England merger. Now they’ve shot down the not-for-profit, Lifespan/Care New England Rhode Island-based solution that ensured protections for workers and patients. We understand what they’re against. Now it’s time for them to clarify what they’re for. Time is running out.

-Lynn Blais, R.N., president of the United Nurses and Allied Professionals

Though we think the Care New England / Lifespan merger could have been a positive development, we do not have access to all the information that Attorney General Neronha used to make his decision to best benefit Rhode Islanders. Now we must continue working to find a comprehensive solution to rebuild Rhode Island's healthcare workforce and ensure providers can deliver the care and services we all need in a changing healthcare environment.

-Patrick J. Quinn, Executive Vice President of SEIU 1199 New England

I appreciate the thorough review conducted by the Attorney General and will review the decision before taking any further steps. My foremost concerns remain the same - ensuring every Rhode Islander has access to a public health system that provides robust care, fosters partnerships with our research-based institutions, and drives equitable access to care while sustaining and creating jobs in this critical sector of our economy.

-Senate President Dominick Ruggerio

I thank the presidents, members of the boards of directors, and the teams at both Lifespan and Care New England for their hard work on this proposed merger application. I encourage the two hospital groups and Brown University to immediately terminate their exclusivity agreement and explore all options available to them in the marketplace. My primary concern has always been to ensure continued high-quality health care for all Rhode Islanders and to protect the employment of the thousands of hard-working front-line professionals.

-House Speaker K. Joseph Shekarchi

Today’s announcement by the Attorney General marks a worrisome moment for the future of our healthcare system in Rhode Island. The pandemic posed a major strain on our medical professionals and hospitals. Now more than ever Rhode Island needs strong leadership in the Governor’s office to work alongside medical leaders to produce a solution that works for Rhode Islanders. We need conversations with major stakeholders and medical professionals that address the needs of patients, healthcare workers and local communities in order to ensure all Rhode Islanders have access to quality and affordable healthcare.

-Nellie Gorbea, Secretary of State and candidate for governor