Lifespan and Care New England Say They May Try Another Merger

Sunday, March 19, 2023

GoLocalProv Business Team

In February 2022, the Federal Trade Commission (FTC) rejected a proposed merger of Lifespan and Care New England, Rhode Island’s two largest hospital groups.

Since the failed merger, the two hospital groups have changed CEOs but not their boards. Hospital groups are again discussing mergers.

Outside of the FTC, Rhode Island Attorney General Peter Neronha also opposed an earlier planned merger involving Brown University.

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Regulators said the proposed merger created a non-competitive monopoly market.

The new hospital system, combined, will manage an unprecedented amount of care in Rhode Island and take the state’s health care market from healthy competition to a virtual monopoly, Neronha said. increase.

As explained in the decision, the proposed merger between Care New England and Lifespan would have gone beyond antitrust laws.

Manages 75% of Rhode Island’s acute inpatient beds
Controls 80% of Rhode Island’s inpatient care market
Controls 79% of the Rhode Island psychiatric inpatient market
Controls over 60% of the Rhode Island market in many ambulatory surgical specialties
50% of commercial healthcare costs for patients whose primary care physician is part of an integrated system accountable care organization
Employ 67% of Rhode Island’s full-time registered nurses working in hospitals

now, Becker hospital reviewa national trade publication wrote that both Lifespan and Care New England are once again discussing a merger.

Lifespan and Care New England “You can always try again”

In an article published on Friday, Becker wrote that the hospital had announced that it could “try again at any time.”

“But right now there may be a sense of never saying it. “We have to accept the decisions they made,” he said. ’ Beckers wrote.

“The immediate focus is on improving Lifespan’s operating numbers, with a particular focus on workforce management. It didn’t,” writes Beckers.

first research

In November, Brown, Lifespan and Care New England signed a joint research agreement.

The Neronha office told GoLocal at the time:

“Generally speaking, review by the Attorney General under the Hospital Conversion Act begins when 20% or more of a hospital’s assets are transferred. The parties themselves recognize that any agreement between them must comply with federal and state laws and regulations, including federal or state antitrust laws, and we do not agree to such We guarantee compliance,” added the office in Neronha.

Beckers said Jon Fernandez is “trying to find efficiencies to make research easier so that scientists can spend more time doing research.” “If we’re working together on a specific disease, it could work better than ever.”

Care New England CEO Michael Wagner, M.D., said in a comment on March 15, “(Lifespan) has new leadership and it would be better to look at how we can work together. Our work at Care New England is profitable and we can take strategic steps from there.”

Caring for Economic Trauma in New England

In February, GoLocal reported that Care New England had only 45 days of cash on hand, according to the company’s latest quarterly report.

Care New England had 57 days of cash on hand a year ago and 72 days of cash two years ago.

Care New England owns Kent, Women & Infants and Butler Hospitals and a visiting nurse in Rhode Island.

In the quarter ended December 31, CNE lost $13 million.

The company has suffered an almost endless string of losses over the past decade.

“Net patient services revenue was $2 million, or 0.76% lower than forecast for the quarter, and $4.9 million, or 1.9% higher than the first quarter last year. Net patient services revenue was lower than forecast,” the report said. ing.

Related article

• Lifespan-CNE Merger Requires Strong Oversight, Former Regulator Says
• Longevity and Care New England pushes for merger, nurses union wants details
• Whitcomb: Finally, RI Hospital Group merger? Universities suing; run as a team
• Lifespan and Care New England merger could face tough challenge by federal regulators
• Mega Merger: Lifespan and CNE Sign Deal – Brown to Invest $125M, Subject to Federal Approval
• Biden Administration’s New Policy on Hospital Mergers Could Doom New England Accords on Lifespan Care
• Lifespan and CNE have thousands of vacancies – Brown consultant says merger will create more jobs
• Attention, Lifespan-Care New England Merger Proposal Is Being Reviewed, So Scrutiny Is Guaranteed
• Sen. Warren urges FTC to block proposed rail merger over safety concerns
• Failed merger leaves RI’s second largest group of hospitals in serious financial trouble
• Lifespan and Care New England merger faces growing financial and regulatory challenges
• GoLocal LIVE: McKee Talks Alexander-Scott, Omicron, and Proposed Hospital Megamerger
• UPDATE: RI Joins FTC in Lawsuit to Block Proposed Lifespan Care New England Merger
• Lifespan CEO Babineau steps down – move follows latest failed merger attempt
• Decade of failed hospital mergers plagues RI healthcare system
• RI’s healthcare system in turmoil: mega-merger, threat of shutdown, rising costs
• 5 Things You Should Know About Lifespan – CNE Mega-Merger
• Exclusive: Raimondo Reevaluation Partner HealthCare and Care New England Merger
• Lifespan and Care New England During Merger Negotiations, Union Calls for Input
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