Care New England Health System, a three-hospital system based in Providence, R.I., announced July 16 that its board voted to withdraw from merger talks with Lifespan and Brown University, both in Providence.
"As those responsible for the fiduciary oversight of CNE, the board has concluded that it is in the best interest of CNE and the community it serves to end the tri-party discussions," said Charles R. Reppucci, board chair, and James E. Fanale, MD, president and CEO of Care New England, in a news release.
Many factors contributed to the decision, including capital requirements and financial stability of the combined system, community need, anti-trust considerations, organizational stability and implementation risks, they said.
The decision comes after Boston-based Partners HealthCare called off talks June 4 to acquire Care New England. That same day, Rhode Island Gov. Gina Raimondo asked Care New England to have discussions with Lifespan and Brown University to try to reach a merger deal.
Care New England representatives said the discussions with Lifespan and Brown University have been "collaborative, mutually respectful, and held honestly and transparently," but the health system ultimately decided it was best to withdraw from talks.
"CNE has implemented a remarkable turnaround with significant improvements. With this in mind, it is the respectful position of CNE to step back and continue on the dedicated path of improving quality, service and access to healthcare for our patients," said Mr. Reppucci and Dr. Fanale.
They added the system plans to expand and make capital improvements and looks forward to continuing work with Lifespan and Brown University on new clinical and academic opportunities.