PROVIDENCE – The proposed merger of Lifespan and Care New England moved one step closer to reality as the Federal Trade Commission concluded its review, the leaders of the two nonprofit health care systems said in a joint announcement today.

“We are pleased to receive this favorable decision from the Federal Trade Commission on our proposed merger,” George Vecchione, president and CEO of Lifespan, said in a statement this afternoon.

“This is an important step,” said John J. Hynes, president and CEO of Care New England. “We now look forward to moving ahead with the state regulatory review process, and to working with the [R.I.] Department of the Attorney General and the Department of Health.”

The FTC’s review of the proposed transaction began about a month ago, in mid-November. If the federal agency believes a merger may substantially lessen competition in a given region, it can block the transaction while it pursues a deeper investigation that begins with a second request for information. In the case of the Lifespan-Care New England proposal, however, the FTC has decided not to issue such a second request.

The merger, announced July 30, would combine the two nonprofit systems into a single network, to be known as Lifespan. (READ MORE) The plan was discussed by the two CEOs in a September interview with Providence Business News. (The full Newsmakers interview, “Lifespan, Care New England CEOs: Merger is a must,” is available to PBN subscribers here.)

“We believe this merger would create a comprehensive health care delivery system that will allow us to continue to provide high quality care to all Rhode Islanders and to maintain our respective missions to care for the uninsured and underinsured,” Vecchione said today. “Together, we will be better positioned to contain health care costs in an increasingly difficult environment, increase job opportunities for Rhode Islanders and enhance local teaching and research efforts.”

Lifespan is a nonprofit health care system – including The Miriam, Bradley, Newport and Rhode Island/Hasbro Children’s hospitals – that has 11,140 employees, 2,677 affiliated physicians and 1,155 licensed beds as of the end of fiscal 2006. Additional information is available at www.lifespan.org.

Care New England is a nonprofit health care system with 6,439 employees, 1,519 physicians, 613 licensed beds and 162 infant bassinets as of 2006. Founded in 1996 by Butler Hospital, Kent Hospital and Women & Infants Hospital, it has grown to include Care New England Home Health and one Care New England Wellness Center. To learn more, visit www.carenewengland.org.