The proposed merger of Rhode Island’s two largest health care organizations was denied Thursday by the state attorney general’s office, which concluded that it would likely lessen competition and increase health care costs while compromising quality and access, the Associated Press reports.
Attorney General Peter Neronha in denying the application for the merger of Lifespan and Care New England said the merged company would have so much market power that it would be in violation of state and federal antitrust laws.
“Put simply, if this extraordinary and unprecedented level of control and consolidation were allowed to go forward, nearly all Rhode Islanders would see their health care costs go up, for health care that is lower in quality and harder to access,” Neronha said.
A merged company would control 75% of all inpatient acute care hospital beds in Rhode Island, the AG’s office said.
Meanwhile, the Federal Trade Commission is suing to block the two health systems from merging, alleging the tie-up between Lifespan and Care New England would increase prices and diminish the quality of care. Read more.
