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Lifespan, Care New England withdraw merger application

The boards of Lifespan and Care New England — both based in Providence, R.I. — have decided to withdraw their merger application after the Federal Trade Commission made an announcement Feb. 17 to file suit to block the deal.

The two systems also won't pursue a legislative solution and have ended their definitive agreement, which had an exclusivity clause, according to a joint news release shared with Becker's on Feb. 23.

The FTC cited competition concerns in its decision. Rhode Island Attorney General Peter Neronha said the state would join the FTC in the lawsuit, stating the deal would raise healthcare costs.

"The organizations continue to believe the combination of the systems would have greatly enhanced the clinical, academic and research missions, reduced costs and improved the patient care environment," the systems said in the release. "Both organizations are committed to partner in ways that are appropriate from a legal perspective and allow them to best serve the needs of the community." 

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