Partners finalizes merger agreement with Care New England
More than a year after the combination was first proposed, Boston’s Partners HealthCare and Rhode Island’s No. 2 hospital system, Care New England, have signed a definitive merger agreement.
The deal will still need to be approved by federal and state regulators, but after delays in contract talks and an unsolicited bid from Brown University, the agreement advances Partners’ aim of expanding beyond Massachusetts and matching the increased scale of other Boston-based health systems.
“We believe that this partnership will further strengthen an already robust local health care system and provide opportunities for new investments in patient care, research, and health care innovation in Rhode Island,” Partners president and CEO David Torchiana, MD, said in a statement.
After earlier looking to disrupt the proposed deal to keep Care New England under in-state ownership, Brown University has now joined the merger talks. Brown president Christina Paxson said “preserving and strengthening” care delivery and research in Rhode Island remains a priority, but she’s now “optimistic we can address the various concerns I raised earlier this year.”
One of those concerns for Rhode Island residents is whether the merger would increase the cost of care in their state. A study from the Rhode Island health insurance commissioner said it would, with insurers expecting Partners to use its clout in the regional market to demand higher reimbursement rates—which would then trickle down to consumers in the form of increased premiums.
Despite hospitals’ claims that mergers and acquisitions will benefit local patients with increased access and efficiency and higher quality care, an abundance of evidence has found the end result of hospital consolidation is typically higher prices and premiums.
The Partners-Care New England deal is just one piece of the expansion plan for Partners. It has reportedly discussed a collaboration with another Rhode Island system, Lifespan, and could merge with Harvard Pilgrim, one of the largest insurers in Massachusetts.
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.