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Care New England could have merger plans by early summer, CEO says

Providence, R.I.-based Care New England could have plans for a merger by next month, its outgoing CEO told WPRI on May 25.

The health system announced the retirement of James Fanale, MD, on May 11. He will step down in early 2023.

Care New England has been going through financial struggles for several years, posting an operating loss of $35 million for the six months ended March 31, according to the report. It had plans to merge with Providence-based Lifespan, but the two organizations withdrew their plans after receiving opposition from the state's attorney general and the Federal Trade Commission.

Dr. Fanale told WPRI the organization's executive team has hired consultants to find potential partners, and that he anticipates providing the board of directors options by June or July.

He told the station that the health system has received interest from three to five organizations, with "a couple formal proposals." StoneBridge Healthcare, a financial turnaround company, submitted a bid to purchase the system in February. The others haven't been publicly announced.

"I'd love to say that, you know, in 35 days or so we'll have some kind of idea — that's what I really dream that we would," he said of when Care New England will have any announcement. "But as my CFO would say, we think it's a 60-day timetable, maybe 90 — but not 180. So I think it's imminent."

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