The proposed merger fell apart in July when Care New England Health System’s board voted to withdraw from talks with Lifespan and Brown. Care New England cited several reasons for the decision, including capital requirements and concerns about the financial stability of a merged system. But according to a letter from Rhode Island Gov. Gina Raimondo, the talks fell through because Care New England demanded that its CEO be named leader of the merged entity.
A Lifespan spokesman told the Globe this week that the organization’s President and CEO Tim Babineau, MD, and Board Chairman Larry Aubin offered to resign to help overcome a sticking point in negotiations about the leadership of the combined system.
“Dr. Babineau and board chair Larry Aubin agreed to do whatever was in the best interest of the community to continue to advance the creation of a complete Rhode Island-based academic medical center that includes Lifespan, Care New England and Brown University,” Lifespan spokeswoman Jane Bruno said in written statement obtained by the Globe.
The three organizations began exploring the merger in June, shortly after Boston-based Partners HealthCare called off its attempt to acquire Care New England. Gov. Raimondo and other stakeholders said that they would prefer to create a local health system in the state rather than see Partners acquire Care New England.
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