RI’s Healthcare Just Got Reshuffled Again — Who Are the Players
GoLocalProv News Team
RI’s Healthcare Just Got Reshuffled Again — Who Are the Players
Now, the test before Rhode Island’s politicians and healthcare leaders is to negotiate a new healthcare structure for the state. There are billions at stake and the healthcare sector employs 70,000 Rhode Islanders.
SEE WHO THE PLAYERS ARE BELOW
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTRhode Island’s third-largest hospital group, CharterCare, is another interested party.
“18 months ago, CharterCARE proposed its own “Rhode Island” solution as an alternative to the proposed acquisition of Care New England by Partners Health. We congratulate Governor Raimondo for her leadership in attempting to bring Lifespan and Care New England to the table to discuss possible state-based alternatives,” said CharterCare’s Otis Brown, the Vice President, Marketing & External Affairs.
“While it is too early to speculate on the manner and form of a Rhode Island Solution, CharterCARE stands ready to provide input and participation in what should be a defining discussion for the future of Rhode Island health care,” adds Brown.
But, other players are swirling and Boston and New Haven healthcare giants are keeping a watchful eye. Yale/New Haven Health already owns Westerly Hospital.
Critical to Rhode Island's Economy
Rhode Island’s healthcare sector is one of its largest and most critical to the Rhode Island economy.
High wages, vacant jobs, and with an aging population, it is an economic sector that is growing and has the potential to drive a new Rhode Island economy.
Former Rhode Island Director of Health Dr. Michael Fine warned recently in a MINDSETTER™ column in GoLocalProv regarding the lack of a cohesive strategy in Rhode Island, “All this hue and cry is evidence of the on-going failure of health policy and health policy leadership in Rhode Island. Ad hoc, deal by deal legislation is no way to understand or improve health spending, policy or public health outcomes.”
“There is some evidence that hospital competition helps keep hospital costs down, an argument for the acquisition of Care New England by Partners, which would provide for that competition meaningfully. Keeping hospital costs down is critical for the state’s economy, since 64 percent of hospital revenue is public money, in the form of Medicare, Medicaid, and public employee insurance payments,” writes Fine.
However, the second largest hospital group in the state -- Care New England -- is suffering through an economic meltdown. The hospital group has lost nearly $130 million in the past three years.
Patrick J. Quinn, the executive vice president of District 1199 SEIU New England warns in a recent editorial in the Providence Journal, “Lifespan’s dream of taking over Care New England would lead to job losses and consolidation of services. This is especially worrisome since Lifespan has a history of paying lower wages than Care New England to the majority of its health-care employees. Perhaps if it did not pay its “non-profit” CEO $2.5 million per year, it would have an ounce of credibility.”
Who Are the Healthcare Players - June, 2019
Governor Gina Raimondo
Raimondo had embraced Partners HealthCare’s entrance into the market.
Now, she is working to find a “Rhode Island Solution.”
This will be a test for Raimondo. Her last high profile effort to bring parties together — the PawSox negotiations -- was a failure and the team left for Worcester.
On Tuesday, Raimondo said, “A thriving hospital system is critical to the health care of all Rhode Islanders. 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. 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.”
Now, Raimondo needs to put together a team to help Brown, Lifespan and others negotiate a viable deal that strengthens Rhode Island’s healthcare system and does not allow this to become a winner and loser scenario.
Tim Babineau, Lifespan CEO
Babineau went to the mat to blow up the Partners HealthCare deal for Care New England.
In opposition to Partners HealthCare, Babineau said, “It is essential that Rhode Island have a locally controlled academic medical center that can attract top specialists and primary care physicians working for the people of Rhode Island. The proposed acquisition places that at great risk.”
On Tuesday, he and Lifespan Board Chair Lawrence Aubin declared in a statement:
“We are pleased that the Governor has taken this important first step to achieve a vision that has eluded the state for more than two decades. We are confident that with the good faith efforts of all the parties involved, we will finally achieve the vision of unified academic health care system for the state of Rhode Island that will have a positive impact on patient care and our economy for years to come. We are excited to get this effort underway.”
Now, the test will be can he negotiate a deal that has the system's best interest in mind.
Christina Paxson, Brown University President
In late April, Paxson's support for the Partners Healthcare deal began to show signs of decay.
"In the past, I have advocated for an integrated healthcare solution that brings Care New England and Lifespan together with Brown to create a unified academic medical center in Rhode Island. However, multiple previous attempts to realize this vision have failed. While I remain committed to the vision of a thriving academic medical center, it's uncertain that another attempt involving Lifespan and Care New England would be successful at present," said Paxson.
Peter Neronha, RI Attorney General
Under the state's Hospital Conversion Act, the RI Attorney General has a key regulatory role.
With the failure of former AG Peter Kilmartin in the oversight of the CharterCare merger and the corresponding collapse of the St. Joseph Health Services pension fund, Neronha is expected to be more circumspect in review of any deal.
Lawrence Aubin, Lifespan Board Chair and Sam Mencoff, Chancellor at Brown University
These two behind the scenes influencers will help to craft a deal -- they have potentially the most influence over the structure and the integration of a Brown-Lifespan structure. The relationship between the two organizations has often been strained.
PHOTO: Mencoff
CharterCare
The for-profit group could be eyeing Kent Hospital. This would help minimize anti-trust issues and create competition in the market.
That would give the group: Roger Willaims, Fatima, St. Joseph and potentially a fourth hospital in Kent.
Unions
The healthcare unions SEIU, UNAP and Teamsters may not be at the table negotiating the deal, but they sure can blow up an agreement that does not take into account their members.
PHOTO: Chris Callaci, General Counsel UNAP
James E. Fanale, Chief Executive Officer, Care New England
Not exactly negotiating from a position of strength. The beleaguered healthcare group has lost $130 million over the past three years and closed Memorial hospital.
One must question if when Partners Healthcare execs looked under the hood they found an even more dysfunctional situation at Care New England. Buyer beware may be the new mantra.
Influencers: Health Director Alexander Scott, RI Foundation's Steinberg, former Health Director Fine, and the Feds
A deal which combines Lifespan and Care New England could face anti-trust issues. Federal review may be an issue if Lifespan and Care New England are merged in whole.
Neil Steinberg and the RI Foundation are emerging as a facilitator in the deal-making.
Former Health Director Micheal Fine will be looked to for analysis.
Health Director Alexander Scott has a critical regulatory role in the Hospital Conversion Act process.
Boston and New Haven Hospital Groups
Yale/New Haven already owns Westerly Hospital. Numerous Boston Hospitals already have partnerships with RI-based hospitals and could emerge as players.
Potential players are for Partners Healthcare and other groups to purchase RI physician groups and compete without having to take on the capital cost and risks of owning RI hospitals.
