The two systems announced an extension this week to their letter of intent and exclusivity, with a not-yet-finished definitive agreement as the ultimate goal.
Partners Healthcare of Massachusetts and Care New England Health System (CNE), based in Providence, R.I., released a joint statement Thursday indicating that the two systems are still finalizing their acquisition plans.
It’s been nine months since CNE announced it had signed a letter of intent to be acquired by Partners. During that time, the systems have devised “a plan for CNE to regain solid financial footing in the coming years,” the statement said, signaling that there’s still a lot of work to be done before the deal would be sent to state and federal regulators for approval.
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This week’s announcement extended the letter of intent and exclusivity agreement announced last year.
“Our lengthy discussions and due diligence with CNE have strengthened our relationship and further solidified our interest in building on the successful clinical collaboration we have already developed together,” said Partners Healthcare President and CEO David Torchiana, MD, in a statement.
“We are also aware of and deeply respectful of the other components of the Rhode Island health care landscape and hope to find common ground and mutually beneficial pathways to improve the academic strength of the hospital programs and maximize the benefit to the Rhode Island economy,” Torchiana added.
Earlier this month, Brown University proposed an alternative to the Partners-CNE deal, announcing that the university would join with a California-based hospital chain to buy CNE, “adding an unexpected twist” to the negotiations, as The Boston Globe reported.
“I feel strongly that letting this acquisition go forward would be wrong for Rhode Island and for Brown,” Brown President Christina Paxson said in a letter, as the Globe reported. “Doing so is likely to lead to specialty health-care shifting to Massachusetts, impeding access to health care for Rhode Islanders and especially for members of the state’s underserved communities.”
CNE President and CEO James E. Fanale, MD, offered reassurances Thursday that the negotiations would keep sight of community needs.
“We will continue to focus our efforts on the remaining work while doing so with perseverance that reflects the needs of our patients and the ever-changing health care landscape,” Fanale said in the statement.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.