Lifespan and Care New England Say They May Try Another Merger

Washington Post Style

Lifespan and Care New England, two prominent health care organizations in Rhode Island, have suggested they may attempt another merger attempt following their unsuccessful bid earlier this year.

The two parties announced their plan to combine forces in February, but the deal was ultimately blocked by the state’s health regulator. The merger would have created the second largest health system in New England, yet the Rhode Island Department of Health (RIDOH) declared it would be contrary to the public interest.

Notwithstanding the failure of their merger attempt, Lifespan and Care New England declared their intention to once again pursue a partnership, with a particular focus on improving patient access to care.

“We remain committed to the idea that a partnership between Care New England and Lifespan is the best way to build a more sustainable health care system in Rhode Island,” stated Timothy Babineau, Lifespan president and CEO.

In a joint statement, Lifespan and Care New England said they are “exploring ways to partner, including the potential for a merger” and will continue to discuss potential opportunities.

The two organizations have a long history of collaboration, having formed a joint venture in 2018 to operate a shared electronic health record system and sharing other resources such as laboratory services.

The two non-profits have faced financial difficulties in recent years, with Care New England losing $50 million in fiscal year 2019 alone. In addition, the financial pressure on hospitals due to the coronavirus pandemic has further complicated things.

RIDOH stated it would closely monitor any future attempt to merge the two organizations, noting that any proposed merger must be shown to be consistent with the public interest.

“The department will closely review any proposed partnership between Care New England and Lifespan to determine if it is consistent with the public interest and will continue to work with both organizations as they explore their options,” noted Nicole Alexander-Scott, director of the Rhode Island Department of Health.

Despite their previous failed merger attempt, Lifespan and Care New England have affirmed their commitment to coming together in order to better serve the people of Rhode Island.