The president and CEO of Rhode Island’s largest hospital system is stepping down at the end of May.
Lifespan, which is also one of the state’s largest employers, announced Thursday that its board accepted the resignation of Dr. Timothy J. Babineau, 61. He will stay on as a consultant through September.
Lifespan says it will appoint an interim CEO “in the coming weeks.” The new CEO will oversee Rhode Island Hospital, Hasbro Children’s Hospital, The Miriam Hospital, Bradley Hospital and Newport Hospital, as well as behavioral healthcare provider Gateway Healthcare, Lifespan Physician Group and Coastal Medical.
Babineau’s resignation comes roughly two months after Rhode Island Attorney General Peter Neronha rejected a proposal that would have seen Lifespan merge with the state’s second largest hospital system, Care New England.
Neronha said consolidating Lifespan and Care New England would create a single system with “extraordinary market power” in violation of state and federal antitrust laws.
Besides the failed merger, Lifespan also is facing financial problems. Lifespan reported last March that it’s anticipating a nearly $63 million operating loss for the first quarter of 2022, according to a presentation to investors. Lifespan officials told investors the losses were exacerbated by the labor market shortage and Providence being among the hardest hit areas during the pandemic. Lifespan also attributed lost revenues to canceled elective surgeries during the winter surge. The $62.7 million projected operating loss is before any savings realized from the “transformation office” the company has created to improve its finances.
“Despite some recent challenges brought on by the pandemic, Lifespan is well-positioned for continued future success on its journey to achieve the vision set forth in Lifespan 2025, our organization’s strategic plan,” Babineau, who led the company for nearly a decade, said in the Lifespan press release announcing his resignation. “I am incredibly optimistic about Lifespan’s future and feel gratified to be leaving it on sound footing.”
With reports by Lynn Arditi
This story has been updated.
