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R.I. hospital groups get extension on merger application

5:35 PM Mon, Dec 14, 2009 |
News staff    Email

PROVIDENCE, R.I.-- The Lifespan and Care New England hospital networks, which have been involved for years in protracted efforts to merge, have been granted an extension until March 31 to complete their state merger application.

If approved, the merger would create the state's largest health care and hospital system.

Attorney General Patrick Lynch and Health Department Director David Gifford had determined that the application previously submitted by the two health care providers was incomplete and set a deadline of Dec. 11 for it to be completed.

On Monday, Lynch and Gifford granted the request for the March 31 extension with several conditions. They urged "regular, ongoing communications" between the hospital systems and the state agencies and allowed the agencies 20 extra days to determine if the application is complete at that time.

Lynch and Gifford also encouraged Lifespan and Care New England to submit missing information "as soon as it becomes available rather than waiting until the new deadline." They also stipulated that the time extension not be used as a basis to sue either state agency.

"Knowing how rigorous the Hospital Conversions Act is, realizing its effects on both applicants and regulators, we've tried to assist Lifespan and Care New England since they first proposed their idea to merge in July of 2007," Lynch said in a statement. "Given the scale of the proposed merger, what it may mean for our economy and what it may mean to access to health care -- which affects everybody's quality of life -- Dr. Gifford and I both want it to rise or fall on its merits.

"We know from our experience with the St. Joseph Health Service-Roger Williams Hospital affiliation that the law works. We hope that this extension of time will allow Lifespan and Care New England to complete."

Meanwhile, the Federal Trade Commission has notified Lifespan and Care New England that it has, for the third time, approved the merger. The approval is valid for only one year, which is why the hospital networks had to apply to the federal agency again this year.

The FTC reviews whether mergers violate federal antitrust laws.

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Comments

citizen said:

Another delay, I wonder why the state Agencys are worried about being Sued? Are they possible guilt of something?

This heading towards 3 years from the date of annoucement.




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