EDITORIAL: Neronha Slaps Down Monopoly Play

EDITORIAL: Neronha Slaps Down Monopoly Play

The decision by Rhode Island Attorney General Peter Neronha to shoot down the proposed Lifespan and Care New England mega-merger was critical to Rhode Islanders' long-term health -- and the economy.

Neronha faced tremendous pressure from some of Rhode Island’s most powerful players — Brown University, Lifespan, and Care New England. They enlisted a de facto endorsement from the Rhode Island Foundation.

The non-taxpaying corporations hired lobbyists like former Speaker of the House Nick Mattiello and ran a 24/7 public relations campaign and issued dubious reports about the benefits of the merger but the media campaign could not cover up the fatally flawed and anti-competitive business proposal.

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The Federal Trade Commission (FTC) condemned the Lifespan-Care New England-Brown plan.

The FTC authorized an administrative complaint, and authorized a suit in federal court, to block the proposed merger, alleging the deal would lead to higher prices and lower-quality care. The FTC and Neronha announced that they will file a complaint in federal district court seeking a temporary restraining order and preliminary injunction to stop the deal and to maintain the status quo pending an administrative trial on the merits of the case. 

“This proposed merger is a bad deal for patients who are likely to see higher hospital bills, lower quality of care, and fewer cutting-edge medical services,” said FTC Bureau of Competition Director Holly Vedova. “By eliminating competition between Lifespan and Care New England, this merger would create a new healthcare conglomerate with outsized power over the entire continuum of healthcare services. As this country struggles to recover from a devastating pandemic, we can’t afford to allow this kind of concentrated control over critical healthcare services. I am pleased to partner with the Rhode Island Attorney General in suing to block this illegal merger to preserve patient choice.” 

Neronha on Thursday not only discussed in detail how the deal would create a monopoly of unmatched proportions, but also outlined how the merger, months in the making, was flawed by lack of planning and detail. Neronha said the hospitals and Brown were unable to articulate what the new combined entity would look like or define the benefit to Rhode Islanders.

In the end, that final straw was moot. As GoLocal started reporting in November of 2020, the FTC has not and will not allow massive hospital monopolistic conglomerates and for good reason -- they are not good for patients' health or pocketbooks.

It is time for new leadership at Rhode Island's healthcare giants -- leaders less focused on empire building and more focused on the state's health.

Now is the opportunity for Rhode Island to create a patient-focused healthcare system tapping into the best minds and top resources.