|
|
 |
Press Releases
| Lifespan and Care New England File Application to Affiliate |
|
07/15/09
|
Proposed combined entity to create increased access to care, jobs and cost savings
The leaders of Lifespan and Care New England announced today that they have filed an application with the Rhode Island Department of Health and Rhode Island Attorney General seeking state approval to affiliate the two organizations. If approved, the combined system would serve as a hub for high quality medicine, a magnet for medical and scientific professionals and a catalyst for future economic development opportunities.
“The benefits of a combined health care system are even more compelling today, given the significant change in the economic environment since we first announced our intent to affiliate,” said George A. Vecchione, president and CEO of Lifespan. “In fact, our ability to continue to offer high quality, cost-effective care, provide and enhance good jobs and maintain a stable health system is more important than ever to help Rhode Island’s economy move into recovery and growth.”
“Rhode Islanders want and deserve high quality care, which will only remain in the state if we are able to compete with hospitals in Boston that have expanded their reach into Rhode Island,” said John J. Hynes, Esq., president and CEO of Care New England. “Our first commitment is to ensure that the affiliation moves forward in a way that improves health care in our state so that patients stay in Rhode Island for care, and that enhances our ability to continue to attract federal research dollars into Rhode Island in an even more competitive environment.”
If approved, an affiliation will also place Lifespan, Care New England, and their member hospitals in a better position to withstand the challenging financial environment and anticipated additional changes with health care reform. A stronger financial footing through greater economies of scale and efficiency will allow member hospitals to focus anew on their missions, including continuing to invest in their communities to improve health status and health care access.
Commenting on the importance of the affiliation, Edward J. Wing, MD, dean of The Warren Alpert Medical School of Brown University, said, “Lifespan and Care New England hospitals are important partners with Brown in fulfilling our academic and research missions. The coming together of these two systems will go a long way to enhance research activities and develop academic programs in our state.”
The Federal Trade Commission (FTC) has twice successfully cleared the federal regulatory requirements regarding the Lifespan and Care New England affiliation. The FTC’s authority is to look at whether mergers violate federal anti-trust standards. If the FTC believes that a merger may substantially lessen competition in a given marketplace, it can block the merger while it pursues a deeper investigation. In 2007 and in 2008, the parties filed for pre-merger clearance, and each time the affiliation was cleared following an intensive investigation that included analysis of competitive data.
The application to affiliate contains nearly 110,000 pages. The next step in the Hospital Conversions Act application process is for the Attorney General and Department of Health to review the application during the next 30 calendar days to determine if it is complete. If there are questions, Lifespan and Care New England have 30 business days to respond. The two state offices then have 10 business days to determine if the application is complete. If accepted, the Attorney General has up to 30 additional business days to rule on any confidentiality issues. Within 180 days, the state will hold public hearings and make a determination on the affiliation.
“We welcome the opportunity to discuss the benefits of this affiliation with the public and to work with state regulators and elected officials to complete this process,” said Vecchione and Hynes.
About Lifespan
Lifespan, a not-for-profit organization, is Rhode Island’s largest health care system. Formed in 1994, it includes Rhode Island Hospital and its Hasbro Children’s Hospital; The Miriam Hospital; Bradley Hospital and Newport Hospital. Lifespan (www.lifespan.org) is the state’s largest private employer, with more than 11,800 employees, and is affiliated with The Warren Alpert Medical School of Brown University. Lifespan hospitals are among the top recipients in the country of research funding from the National Institutes of Health. The hospitals received nearly $74 million in total research funding in fiscal 2008. All Lifespan-affiliated hospitals are charitable organizations that depend on support from the community to provide programs and services.
About Care New England
Care New England, located in Providence, was founded in 1996 by Butler Hospital, Kent Hospital and Women & Infants Hospital. Care New England is a not-for-profit health care system that offers a continuum of quality care. Our system includes two teaching hospitals affiliated with The Warren Alpert Medical School of Brown University, Butler and Women & Infants; a community hospital, Kent; a visiting nurse and home care/hospice agency, Care New England Home Health; and one Care New England Wellness Center. Care New England has 6,612 employees, 1,573 physicians, 613 licensed beds and 162 infant bassinets (FY08). For more information about Care New England, please visit www.carenewengland.org. |
|
Back
|
|
 |
|
