The shocking news Wednesday of massive financial losses at Lifespan — Rhode Island’s largest private employer — ought to jolt the state’s officials awake. Rhode Island should have the strongest possible healthcare system in place. If it fails to create one, it runs the risk of seeing the system picked apart, with lucrative operations shipped off to Massachusetts, fatally weakening Rhode Island’s ability to sustain high-quality health care.
Unfortunately, efforts to merge the major hospital systems in the state, Lifespan and Care New England, faltered during the summer, when CNE required that the merged entity put its CEO, James Fanale, in charge.
That preposterous demand was a non-starter. It would have constituted the tail wagging the dog, since Lifespan is the much larger entity. More importantly, it would have prevented a new board from searching widely for the best candidate possible.
Ironically, the Lifespan losses announced yesterday were caused in part by the inter-connectivity of Rhode Island’s hospitals. CNE’s closure of Memorial Hospital, in Pawtucket, which was a big financial drain on the chain, simply drove many poor patients to the Miriam Hospital, in Providence, and other facilities, shifting huge costs, including very pricey emergency-room care, to Lifespan.
Thus, CNE’s report that it finally turned a profit in the fiscal year that ended Sept. 30, while encouraging, is somewhat deceptive. Meanwhile, CNE appears to face mounting costs for capital improvements.
Two leading doctors at Lifespan, David Wazer and Ziya Gokaslan, warned in a Commentary piece just last Sunday (“Public needs answers about merger collapse”) that this state of affairs threatens care in Rhode Island.
“Gov. Gina Raimondo’s strong desire (and valiant efforts) to facilitate the formation of a unified academic medical center in Rhode Island with Brown University, Lifespan and Care New England becomes increasingly urgent as time passes … [A merger] remains the best, and only viable, solution for Rhode Island,” they wrote.
“As physician leaders at Lifespan, we are anxious to have the parties get back to that work and, in doing so, put all the issues on the table so the people of Rhode Island can see for themselves what is going on. This is simply too important for citizens to be kept in the dark,” the doctors wrote.
Ms. Raimondo, Brown and Lifespan have all agreed to waive a non-disclosure agreement and share information about a potential merger with the public. Only CNE is blocking disclosure.
The state’s health-care system is too important for these details to be kept hidden. We call on CNE board Chair Charles Reppucci, of Hinckley, Allen & Snyder; Vice Chair Gary Furtado, of Navigant Credit Union; and the rest of the board to do the right thing and share information with the public.
We also urge R.I. Attorney General Peter Neronha, who oversees the conduct of charitable institutions, to take a look to make sure the long-term fiduciary interests of CNE are being served, rather than short-term or selfish interests. It is hard for the public to make this determination, since CNE insists on keeping Rhode Islanders in the dark.
Governor Raimondo and legislative leaders should also do what they can to protect our health-care system. Inaction in response to a series of loud alarm bells could badly hurt the people of Rhode Island.