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Letter of Intent Reaffirms Potential Benefits of Partnership Between Care New England and Memorial Hospital of Rhode Island
Due Diligence Phase of Partnership Discussions Now Underway

September 10, 2012

Care New England (CNE) and Memorial Hospital of Rhode Island (MHRI) have cleared the first step in their partnership discussions with the signing of a Letter of Intent.  The letter signals that, at this point in the due diligence phase, both entities are reaffirming the opportunities for enhanced patient care, complementary services and strong growth in the future.

The two entities entered into exclusive discussions in June noting that a partnership between MHRI and CNE could create an integrated delivery network as the health care delivery system transforms into a new population-based model.

The Letter of Intent, approved unanimously by the boards of both organizations and signed by Dennis D. Keefe, president and CEO of Care New England and Arthur DeBlois III, interim president and chief executive officer of Memorial Hospital of Rhode Island, sets the stage for the drafting of a detailed agreement between the two organizations.

"We are now in an intense due diligence phase, and are encouraged by the multiple opportunities for synergies between our two organizations," said DeBlois.  "The shared values and vision of Memorial Hospital and Care New England make for a great cultural fit. A strategic partnership will allow both organizations to enhance patient care, advance our academic missions and improve community access to health care."

"As we have studied the potentials, and counterparts from both organizations have initiated discussions, it validates the hopes we have placed in this partnership," said Keefe.  "Together we will be better able to respond to the new world of population-based care and payment reform and help transform the future of health care for our state and region."

The partnership between the two organizations would create a continuum of care for patients, across geographic and clinical lines. As health care models are transformed, the potential partnership between  CNE and MHRI moves towards the vision of improving health of the population, enhancing the patients' experience of care and controlling the per capita cost of care.

Upon conclusion of the due diligence phase, the organizations will move forward to seek regulatory approval.

About Care New England
Care New England, located in Rhode Island, was founded in 1996 by Butler Hospital, Kent Hospital and Women & Infants Hospital.  Care New England is an integrated health care system that offers a continuum of quality care.  The system includes primary care and specialty physicians; two teaching hospitals affiliated with Brown Medical School, Butler and Women & Infants; a community hospital, Kent; a visiting nurse and home care agency, the VNA of Care New England; and Care New England Wellness Center.

About Memorial
Memorial Hospital of Rhode Island is a 294-bed teaching center affiliated with The Warren Alpert Medical School of Brown University. Memorial is the chief site for the medical school's primary care academic program. Research focuses on primary care and disease prevention, including osteoarthritis, heart disease, cancer, pulmonary function, maternal and child health and women's health issues. Memorial provides a full spectrum of health services for the people of Rhode Island and southeastern Massachusetts. Services include oncology, cardiology, rehabilitation, pain management, obstetrics/gynecology, pediatrics, 24-hour intensive care specialist coverage and diagnostics. Memorial offers primary care services at facilities in Pawtucket, Central Falls and Plainville, Massachusetts, and operates an adult day center, and home care program to provide a seamless system of medical care.
  
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