Boston-based Partners HealthCare has won approval from federal regulators for its planned takeover of Rhode Island’s second-largest hospital system, Care New England, a spokesman for Partners confirmed Tuesday.
Partners is expected to file for regulatory approval from Rhode Island’s health department and attorney general by the end of the month, said Partners spokesman Rich Copp.
Once a complete application is submitted, Rhode Island health officials will have 90 days — as opposed to the usual 120 days — to review the proposed takeover under a fast-track regulatory review process the health director approved last September. The deal also will need the approval of Rhode Island’s new attorney general, Peter F. Neronha, who takes office in January.
Partners and Care New England first announced the deal in April 2017. But Care New England first had to come up with a plan to stem its financial losses, which ultimately involved closing Memorial Hospital in Pawtucket and shedding employees.
Since the closure of Memorial, Care New England has reported its finances have improved. All three of its operating hospitals – Women & Infants, Kent and Butler – reported gains in the 2017-‘18 fiscal year that ended Sept. 30, 2018. However, the company still reported a year-end operating loss of nearly $27 million due to Memorial.
The company said the “greatest challenges” going forward are patient volumes. Specifically, volumes have fallen in the medical/surgical, obstetrics, deliveries and the neonatal intensive care unit, or NICU. The company said it has developed plans to stabilize patient activity as well as to align staffing to the lower volume levels.
In addition to the three hospitals, Care New England also owns Kent County Visiting Nurses Association and The Providence Center. Partners’ network includes Brigham Women’s Hospital and Massachusetts General Hospital. Both hospital networks are nonprofits.
