Greater Providence Chamber of Commerce Says Lifespan/Care New England Merger Would Advance World-Class Research Capabilities

Enhanced research platform would drive new jobs, new investment in Rhode Island businesses, health care institutions and universities

The Greater Providence Chamber of Commerce is weighing in with a first set of observations on how the proposed merger of the Lifespan and Care New England health care systems could advance Rhode Island’s standing as a world-class center for medical research and spin-off entrepreneurship. Today’s observations are designed to build on a body of work now being conducted by the Chamber to advance Rhode Island’s knowledge economy and to leverage the state’s strengths in the academic research, health care, design, technology, environment and entrepreneurship arenas. Against that backdrop, the Chamber believes that the consolidation of Lifespan and Care New England -- working in close collaboration with the Warren Alpert Medical School of Brown University -- could truly heighten Rhode Island’s profile as a center for biomedical, public health, genetics and life sciences research and quicken the pace of new company creation.

Although the yet-to-be-finalized merger application covers a vast array of elements, the Chamber, at this moment in time, is focusing its comments on the significant potential for an enhanced research platform. Investment in research and development is an important economic lever as Rhode Island competes with the rest of New England and the nation for jobs, people and prosperity. Strengthening the academic and medical partnership to better compete with newly-energized regional health care systems will preserve Rhode Island’s status as a net importer of patients.

As the Chamber’s work in capturing the full potential of the knowledge economy unfolds, we believe the combined entity of Lifespan and Care New England could be a powerful resource for driving Rhode Island’s economy forward. The magnitude and urgency of strengthening our health care, technology and higher education sectors to generate quality jobs at all points along the economic spectrum is why the Chamber feels compelled to begin discussion on the merger.

In addition, we believe a combined system could be a potent force in buttressing the financial stability of its member hospitals. Hospitals that are financially sound are able to compete strategically, invest in new technologies for improved patient care, and withstand the strains associated with escalating levels of uncompensated care. Both are vitally important issues.

As an outgrowth of the application process, the Chamber believes the broader discussion could have the added benefit of shedding light on the problems and opportunities of the community hospital system.

Finally, the Chamber is mindful that the health insurers and other parties are fully assessing how they believe the proposed merger would affect the competitive aspects of the health insurance marketplace as well as the community hospital landscape. Because the majority of the Chamber’s membership base is small business, it will be important to ensure that the proposed consolidation does not significantly increase the cost of hospital care and precipitate a run-up in small business insurance rates. We will make certain that the appropriate questions are being posed on their behalf to understand any newly embedded costs. We look forward to reviewing the findings of those analyses, when complete, and commenting in a subsequent round of observations.

In terms of timing, we are hopeful that the finalized merger application will be evaluated in a manner that prudently combines thoughtful analysis and prompt resolution so that all facets of the community can plan their next set of actions with certainty and precision.