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Rhode Island Attorney General and FTC Team Up to Block Merger of Healthcare Systems

  • Rhode Island AG Peter Neronha issued a decision pursuant to his authority under Rhode Island’s Hospitals Conversions Act denying a proposed merger between healthcare systems Lifespan Corporation and Care New England Health System as a violation of both state and federal antitrust laws.
  • The decision outlines the AG’s office’s conclusion that the merger between Rhode Island’s two largest healthcare systems would result in an entity with outsized market power that will substantially lessen competition across several healthcare markets in Rhode Island, including inpatient general acute care, leading to increased healthcare costs and reduced access to care and care quality.
  • Rhode Island also intends to join the FTC’s federal suit for a temporary restraining order and preliminary injunction against the merger. Separately, the FTC filed an administrative complaint against Lifespan and Care New England seeking to either block their merger or effect structural relief such as divestiture and reconstitution of assets.