Southcoast Health in $2B merger with Rhode Island co.
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SouthCoast Health and Care New England last November announced plans to study a partnership and on Tuesday the non-profit hospital and health care systems announced their boards have voted to move forward with a $2 billion affiliation featuring eight hospitals and more than 15,000 employees.
The health care companies plan to operate an integrated system, and are set now to work out an affiliation agreement and embark upon required regulatory processes in Massachusetts and Rhode Island.
Southcoast Health includes Charlton Memorial Hospital in Fall River, St. Luke's Hospital in New Bedford and Tobey Hospital in Wareham, as well as Southcoast Behavioral Health in Dartmouth.
"This affiliation helps to build an even stronger future for our organizations while importantly maintaining our steadfast commitment to our local communities. We look forward to continuing this collaborative and transparent process, sharing additional details about our vision for healthcare delivery as plans are developed and as we begin the regulatory process," Southcoast Health Board Chair Jean MacCormack said in a statement.
The union that represents more than 2,000 workers at the two companies called for a "transparent" process, limits on disruption for patients and communities, and employment security and job creation, including "good wages, opportunities for training and advancement, and a free and fair union election process that respects workers' right to organize."
"While workers at 1199SEIU United Healthcare Workers East recognize that the proposed merger may offer potential to better serve the health care needs of patients and communities in southern New England, we are also aware of risks of the proposed transaction," Tyrék Lee Sr., executive vice president of 1199SEIU United Healthcare Workers East, said in a statement. "Our workers will be vigilant during this process, which will impact thousands of employees and patients across the region and require approval through two state regulatory processes. Because any health system merger should be about delivering high quality healthcare rather than expanding profits, we will be taking steps to ensure that this new entity is better able to guarantee quality, affordable care that is accessible for patients and communities."
A new parent entity will be named after a "comprehensive brand assessment," the companies said. Southcoast President and CEO Keith Hovan will serve as president and CEO and Care New England CEO Dennis Keefe will become CEO of the Population Health initiative for the unified system.
Care New England was founded in 1996 and is the parent organization of Butler Hospital, Kent Hospital, Memorial Hospital of Rhode Island, Women & Infants Hospital of Rhode Island, the VNA of Care New England, The Providence Center, CNE Wellness Center and Integra, a certified accountable care organization created with the Rhode Island Primary Care Physicians Corporation.
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