Media Release

For: Immediate Release
Date: December 21, 2007

Attorney General and Director of Health Release Merger Application to Lifespan and Care New England

Following Monday’s announcement of the Federal Trade Commission’s (FTC) ruling on the proposed merger of Lifespan and Care New England, the Department of the Attorney General (AG) and the Department of Health (HEALTH) announced today that they have released the application form to Lifespan and Care New England to use when they apply for their merger.  The AG and HEALTH have been working to develop an application and review process that will ensure the collection of information necessary to assist the AG and the Director of Health to review the application in a thorough manner.  Both Departments are fully prepared to review an application when it is submitted.

“Now that the proposed merger has passed review of the FTC, we need to focus on how it would impact access to affordable care, workforce issues, delivery of medical services to the community, and cost,” said Director of Health, David R. Gifford, MD, MPH.

“As I said in July when the proposed merger was first announced, I want to assure Rhode Islanders who rely on the health-care services provided by Lifespan’s and Care New England’s member hospitals that as much as I recognize how important these institutions are to our economy and overall quality of life, they are not as important as the people they serve,” said Attorney General Patrick C. Lynch. “Focusing on the antitrust and charitable trust implications of this proposal, my attorneys and I look forward to working to protect the interests of everyday, average Rhode Islanders throughout this process.”

The hospital merger application must be simultaneously submitted to the AG and HEALTH. The two Departments will then follow prescribed timeframes set in statute to review and approve or deny the application.  Within 30 working days, the Departments would work together to determine whether the application needs more information. Next, the applicants are given 30 days to fix any deficiencies with the application. There is a final ten-day period for the Departments to accept the application as complete or reject it.

Once the application is deemed complete, it will become a public record.  The review process should be completed within 180 days following the application being deemed complete.  The AG and HEALTH will also hold several public informational meetings during the review process, as public input will be very important given the magnitude of this merger.

The proposed merger would be the first of its kind in Rhode Island and would represent a substantial change in the healthcare landscape in the state, if approved. The AG and HEALTH will review the application to ensure that such a merger will be beneficial to Rhode Islanders.

In 1999 there was talk of a merger between Lifespan and Care New England, however, the application never came to the Departments for a complete review.