The state's second-largest health care system, Care New England, to remain independent
PROVIDENCE — With new financial support in the recently approved state budget, Care New England, the state's second-largest health care system, will be able to remain independent, the health care provider announced on Wednesday.
"This allows us to stay as a locally governed nonprofit," CNE president and CEO Dr. James E. Fanale told The Journal in an interview. He said it means Care New England, which owns Butler, Kent and Women & Infants hospitals, will not need to entertain offers of acquisition.
"Today’s announcement followed months of examination and analysis of various offers and partnership structures, followed by deliberation of Care New England’s Board of Directors," the system said in a news release.
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"Just a few of the key areas under the microscope were: the financial commitments made by potential partners, the experience of potential partners in operating and integrating hospitals, their track record of working productively with health care workers in Rhode Island, their experience in academic health system environments, as well as any likely financial and regulatory barriers to implementing specific transactions."
A volatile year so far
Wednesday's announcement is the latest development in what has proved to be a volatile year thus far in Rhode Island health care. Events were set in motion in February, when the office of Attorney General Peter F. Neronha denied an application by CNE and Lifespan, the state's largest health care system, to merge. The proposed merger was the latest and likely last attempt to combine the systems.
Next came the April announcement that Lifespan president and CEO Dr. Timothy J. Babineau would resign at the end of May. That was followed a month later by the announcement that Fanale plans to retire in early 2023.
At the time, concerns were raised about CNE's ability to survive, given its precarious finances. But Wednesday's announcement, Fanale told The Journal, puts an end to "years of struggling with lots of things."
One key to CNE's continued independence is an increase in the state budget in Medicaid reimbursement for baby deliveries, which will significantly improve Women & Infants' finances.
In the CNE release, Fanale and CNE Board chairman Charles Reppucci said "this plan, coupled with the financial support included in the recently-enacted state budget, will help ensure that Care New England will maintain a stable operating platform and continue to fulfill its mission to care for its community of patients and support our staff.”
The release stated that the two men "also expressed wholehearted thanks to the legislative leadership, governor, and especially the Speaker of the House and Senate President for their counsel and support."
House Speaker K. Joseph Shekarchi said in a statement: "I have always recognized the value of Kent Hospital to my home city of Warwick, and it is near and dear to my heart. I worked hard throughout this year’s budget process to make certain that Kent will have the resources necessary to continue providing quality health care and to protect the jobs of the dedicated professional staff. The state funding will help Kent and Care New England as it works to build a stronger health care delivery system.”
According to the CNE release, "following the decision, Care New England will work on arrangements with Brown University, its health plans, Lifespan and other local hospitals and health systems, and clinical partners."
"It's been a hell of a four months and a lot of work," Fanale told The Journal, "but I'm delighted."
This article originally appeared on The Providence Journal: Care New England to remain independent. CEO credits state support
