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Partners backs out of plan to acquire Care New England

Boston-based Partners HealthCare announced June 4 that it will withdraw its application to acquire Care New England Health System, a three-hospital system based in Providence, R.I., according to the Boston Business Journal.

Partners pulled out of the deal more than year after signing a definitive agreement to acquire Care New England. Partners called off talks the same day Rhode Island Gov. Gina Raimondo asked Care New England to try to work out an agreement with Lifespan and Brown University, both in Providence.

"Over the past several months I have increasingly heard from a number of stakeholders and understand the appeal of a locally-run, academic medical center based in Rhode Island," Ms. Raimondo said in a statement to the Boston Business Journal. "With that in mind, I have called on Care New England, Lifespan and Brown to sit down once again and consider a joint solution. While I have little control over private hospital systems, I do have the ability to bring these parties together and ask them to reconvene negotiations on a crucial decision that will impact all Rhode Islanders for decades."

The governor asked Care New England, Lifespan and Brown to try to solidify a new merger deal over the summer. The three Rhode Island organizations agreed to continue talks and evaluate the feasibility of a merger.

In response, Partners is withdrawing its application to acquire Care New England.

"In order to give this effort the best possible chance for success and to provide maximum flexibility to the governor and the leadership of these three institutions, we will be withdrawing our application to acquire CNE," Partners Interim President and CEO Anne Klibanski said in a statement to the Boston Business Journal. "We look forward to reengaging at the appropriate time — especially with a fully integrated local system. We greatly value our relationship in Rhode Island and want to do what's best for the state and its citizens."

More articles on healthcare industry transactions:

Sale of Alaska hospital delayed
UCSF ends talks to deepen ties with Dignity Health
Mass General to acquire second New Hampshire hospital

 

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