The union representing nurses at Care New England is asking state health regulators to deny the hospital system’s request for a fast-track review of its proposed takeover by Massachusetts-based Partners HealthCare.
The United Nurses and Allied Professionals Union – which represents about 1,200 of the hospital system’s employees – said in a Sept. 5, 2018 letter to the chief regulator at the Rhode Island Department of Health that Care New England’s hospitals no longer appear to be “facing a substantial financial hardship…”
Care New England reported last month third-quarter net income from operations of $4.6 million excluding Memorial Hospital, which closed last year. And all three of Care New England hospitals – Kent, Women & Infants, and Butler Hospitals – reported positive year-to-date earnings as of June 30, 2018.
Care New England said in August that its financial operations continue to improve. Rhode Island’s second-largest hospital system reported third-quarter net income from operations of $4.6 million excluding Memorial Hospital.
In its letter, UNAP references Care New England CEO James Fanale’s statement about the company’s “momentum” and the closing of the money-losing Memorial Hospital, noting that “Butler, Kent, and Women & Infants hospitals and the VNA of Care New England are all profitable from operations through the third quarter ending June 30, 2018.’’
To qualify for a fast-track review, state law requires the company to show it meets certain criteria of a distressed hospital system.
Care New England submitted an amended request dated Sept. 5 that details the company’s financials including Memorial Hospital, which the company said continues to weigh down its balance sheet. The company reports that including those expenses, all of its hospital meet the criteria for being “distressed” in fiscal 2017, and Women & Infants and Kent also both met the criteria in the first-quarter of fiscal 2018.
If the request is approved, the Rhode Island Department of Health would have to review the application to take over Rhode Island’s second-largest hospital system within 90 days, as opposed to the usual 120 days.
The curtailed review also reduces the amount of documentation the two hospital systems are required to submit as they seek state approval for the deal. And an “expedited” review does not require a public hearing on the application, though state law does provide for a period of public comment, generally in writing.
updated 12:30 p.m.
correction: an earlier version misspelled the name of Care New England CEO James Fanale.
