Care New England COO: Partners Deal On Track

Oct 18, 2017

Care New England’s chief operating officer said Wednesday that negotiations are on track to sell Rhode Island’s second-largest hospital company to Partners HealthCare of Massachusetts.

Dr. James E. Fanale said that the deal involves several hospitals, physician practices and a lot of real estate so it’s not surprising that it’s ongoing six months after it was announced.

“Some people may think that (the process) has slowed down,’’ Fanale said. “It has not slowed down.”

Care New England plans to close Memorial Hospital in Pawtucket. Company officials say they will keep some out-patient services open in a separate building nearby.
Credit Lynn Arditi / RIPR

Partners’ executives have toured Care New England’s facilities several times, “walking through every square foot of every building that we have,’’ he said. “So it’s really a complex, arduous task of looking under the covers of everything. So that’s what’s going on.”

Care New England, which has been losing money, earlier this week announced plans to close one of its biggest money-losers, Memorial Hospital, in Pawtucket. The decision followed the breakdown in negotiations to sell Memorial to California-based Prime HealthCare. Care New England has said it needed to shed Memorial before it can sell the company to Boston-based Partners.

Care New England’s Finale declined to speculate on a time frame for closing the Partners deal, saying only that talks are ongoing.

Care New England reported a nine-month operating loss of $46.5 million that includes:

Memorial Hospital: ($16.3 million)

Women & Infants Hospital: ($10.3 million)

Butler Hospital: ($3.05 million)

The Providence Center: ($1.9 million)

Kent Hospital: ($1.35 million)