Brown University, Prospect In Potential Bid To Acquire Care New England Brown University, Prospect In Potential Bid To Acquire Care New England – NTK Network

Brown University, Prospect In Potential Bid To Acquire Care New England

Brown and Prospect could make the proposal if Care New England’s current negotiations for a merger with Partners HealthCare fall through.

By NTK Staff | 12.12.2017 @6:00am
Brown University, Prospect In Potential Bid To Acquire Care New England

Brown University and Prospect Medical Holdings are making plans to acquire the struggling Care New England hospital system, according to multiple sources. WPRI reports:

Brown University and Prospect Medical Holdings are in serious talks about making an alternative bid to buy Care New England, Rhode Island’s second-largest hospital system, Eyewitness News has learned.

Multiple sources close to the situation confirmed the potential joint venture between the Ivy League school and the California for-profit company, which already has a majority stake in Roger Williams Medical Center and its sister facilities. They cautioned that the outcome of the talks remains uncertain due to the complexity and sensitivity of the discussions.

Brown and Prospect could make the proposal if Care New England’s current negotiations for a merger with Partners HealthCare fall through.

Those talks have been rocky recently due to complications in Care New England’s plan to close one of its struggling hospitals. A local nurses union filed a lawsuit against Care New England to prevent the closure of Memorial Hospital.

Currently, Brown University is one of the only top-tier medical schools that does not own any hospitals.

If the Partners deal falls through, Care New England may be especially receptive to an acquisition by Brown, which would maintain local control of one of Rhode Island’s largest hospital systems.

Sen. Sheldon Whitehouse (D-RI) has expressed reservations about out-of-state companies taking over Care New England, comparing it to when big banks took over local branches in the 1990s. As RINPR recently reported:

Whitehouse compared the planned Partners deal to banking industry takeovers of the1990s — when local banks like Fleet were sold to to out-of-state companies — taking along with it jobs and related businesses.

“Whatever the merits are of the Care New England merger with Partners,’’ Whitehouse said, “I think we have to think about it in the larger context of what this means for having local leadership of hospitals in Rhode Island.”

An acquisition by Brown may assuage the fears of Whitehouse and others in the Rhode Island healthcare industry of out-of-state takeovers.

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