Brown’s President Paxson Takes on One of The Most Powerful Healthcare Companies in America
Friday, January 12, 2018
Christina Paxson came to Brown in 2012, and for the most part, has kept a low profile in Rhode Island. She has been a fundraising-focused President, who is the midst of a $3 billion campaign, but now she is fighting to keep Boston-based Partners HealthCare -- and their medical school affiliate, Harvard Medical School -- out of the Rhode Island market.
Reaction to Paxson’s move was swift and varied.
On Thursday, Paxson announced that the proposed purchase of the financial fledgling Care New England by mega healthcare giant Partners was bad for Rhode Island’s economy.
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In a conference call with reporters on Thursday, Paxson said she was concerned that if Partners made the acquisition of Care New England, Rhode Island would see significant jobs losses.
“It also would likely increase the cost of care and reduce the ability of Rhode Islanders — consumers, businesses, healthcare workers and policy-makers — to have a voice in how our healthcare system works. If the focal point of Rhode Island healthcare shifts to Boston, excellent physicians (many of them Brown-trained) could be less likely to choose Rhode Island as a place to practice,” she added.
Partners' workforce is more than twice the size of Rhode Island’s direct healthcare workforce — it employees more than 70,000. The healthcare giant’s budget is roughly a third larger than Rhode Island’s — Partners' annual budget in 2017 was in excess of $13.4 billion.
A New Partner for Brown
As part of Paxson’s announcement of the University’s opposition to the Partners and CNE deal, she also announced that Brown is partnering with Prospect of California — the for-profit hospital group -- in launching an alternative bid. Prospect owns the majority stake in CharterCARE — Roger Williams Hospital and Fatima.https://www.golocalprov.com/news/breaking-brown-opposes-care-new-england-sale-to-partners-teaming-with-prosp
The pronouncements had been rumored for weeks, but the strategy change for Ivy League Brown sparked comments from a range of sources.
Governor Gina Raimondo embraced the Brown pronouncement. “I’m encouraged that there might be even more options for Care New England’s future. Having a financially sustainable hospital system in Rhode Island is critical to the health and prosperity of our people," said Raimondo.
Behind the scenes, Raimondo has strongly voiced support for the Brown-Prospect option.
Senate President Dominick Ruggerio, who has close political ties to Care New England told GoLocal in an email, “We respect the process that Care New England is currently undertaking. Today’s announcement by Brown demonstrates the tremendous value and expertise invested in health care in Rhode Island and what it represents for patients, academics, research, and jobs.”
Speaker of the House Nick Mattiello said on Thursday, "At this time, I have not seen an analysis or details of Brown’s proposal. I look forward to receiving these details.”
United States Senate candidate Bob Flanders said, “I recently stepped down from the CNE board when I became a candidate, so I am hardly disinterested, but no, I don’t think it will have an adverse impact.”
Former U.S. States Attorney and now candidate for Attorney General, Peter Neronha said, “I read today’s reporting on Brown’s proposal with considerable interest. Whether one agrees or disagrees with the conclusions drawn by Brown, plainly, by making its own proposal, Brown is a now a party in interest.”
Neronha went on to add the following:
“Without access to considerably more information than I have right now, I can’t say whether Brown’s proposal with Prospect would be better for Rhode Island than a purchase of CNE by Partners, either for the state economically, or, more importantly in my view, in terms of Rhode Islanders’ access to effective and affordable health care. That access to effective and affordable health care, for everyone, is what is of critical importance in today’s complex healthcare environment.
Ultimately, CNE will or will not reach a deal with Partners. If they do, the Department of Health (and the Attorney General’s Office) will gather a great deal of information as they evaluate what is best for Rhode Islanders under the relevant criteria of the Hospital Conversions Act. That evaluation presumably will address many if not all of the concerns Brown raised today,” added Neronha.
Less Than Enthused
The United Nurses and Allied Professional (UNAP) blasted Brown’s partnership with Prospect. The union has been battling with the company for years.
"We find it difficult to understand why Brown University would risk its stellar academic reputation through a partnership with Prospect Medical Holdings -- an out-of-state run, for-profit corporation with a documented history of jeopardizing patient safety and care. Prospect management represents the worst in profit-based medicine and we believe this move would be calamitous for Rhode Island patients and health workers,” said UNAP’s General Counsel Chris Callaci.
"This is a remarkably bad deal for Rhode Island, and we urge state regulators and all elected leaders to look closely at Prospect's extensive record of putting patient safety at risk," Callaci added.
In addition, Care New England stiff-armed the Brown and Prospect announcement.
“Today’s [Thursday’s] announcement by Prospect Medical Holdings and Brown University represents their intention to acquire and split up the Care New England Health System – a process undertaken of their own independent action and interests. While we appreciate their interest in the future of health care in Rhode Island, we will move forward with the important process we have set upon in the best interest of both CNE and those we care for. To that end, CNE will proceed in our exclusive discussion with Partners as set forth in our letter of intent and we look forward to the next steps in that process."
Presently, CNE is under an agreement to exclusively negotiate with Partners — that agreement is set to expire at the end of the month.
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