Rhode Is­land’s two big­gest sys­tems can­cel their merger

Modern Healthcare - - Late News -

Rhode Is­land’s two ma­jor health sys­tems called off plans for a merger in­volv­ing their seven hos­pi­tals, cit­ing the state’s cum­ber­some reg­u­la­tory process as a ma­jor fac­tor in the de­ci­sion. Four-hospi­tal Life­span and three-hospi­tal Care New Eng­land Health Sys­tem said in a joint writ­ten state­ment: “Nearly three years af­ter the ini­tial an­nounce­ment of the merger, and sub­se­quent to sub­mit­ting tens of thou­sands of pages of in­for­ma­tion to state reg­u­la­tory agen­cies, there is no clear timeline to com­plete this process.” The sys­tems, both based in Prov­i­dence, said the ex­ten­sive reg­u­la­tory work had be­come too great a dis­trac­tion dur­ing a time of mount­ing core-busi­ness chal­lenges, in­clud­ing in­creases in un­com­pen­sated care, un­cer­tainty in fed­eral re­im­burse­ments and ac­cel­er­a­tion in re­gional com­pe­ti­tion.

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