A PYMNTS Company

FTC Pleased Over Termination Of Lifespan-Care New England Merger

 |  March 3, 2022

Federal Trade Commission Bureau of Competition Director Holly Vedova issued a statement on the termination of the proposed merger between Lifespan and Care New England Wednesday (March 2), saying she was “pleased.”

“I am pleased that Lifespan and Care New England have abandoned their efforts to consummate an anticompetitive merger that should never have been attempted in the first place,” Vedova said.

She added that if the transaction hadn’t been challenged, the two biggest healthcare providers in Rhode Island would have come together to create a dominant entity that would likely lead to “higher prices and lower quality care for Rhode Islanders.”

Vedova noted that this wasn’t even the first time this has happened recently, with another merger being stopped just weeks ago.

“This enforcement action should serve as notice that the FTC remains vigilant in enforcing the antitrust laws and will stop at nothing to protect healthcare consumers who are faced with unlawful hospital consolidation,” she said.

The merger had been challenged in February when the FTC voted to file an administrative complaint to block it. The allegations against the merger were that the merger would cut competition and impact the level of care in the area.

Lifespan was Rhode Island’s first Health System, integrating the Rhode Island Hospital and The Miriam hospital in Providence, RI. The Not-for-Profit system now includes three teaching hospitals.

The other party to the deal, Care New England, is Rhode Island’s second-largest health system. It has reportedly received merger offers from other healthcare systems, which may have conrtibuted to the decision to abandon the Lifespan merger.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.