A spokeswoman for Care New England refused to say if both companies were terminating the deal. It could also appeal the attorney general's decision under the Hospital Conversions Act, but would likely face a challenging legal battle.

But in a statement, Care New England President James Fanale expressed disappointment with the FTC’s decision. "I will say that we can truly know that we did everything we could over the past few years of hard work to get this done. We thought it was the right thing to do, but now we will need to move on to a new path forward.”

If the merger were approved, the two would employ over 23,600 staff members in Lifespan’s Rhode Island, Miriam, Hasbro Children’s, Newport and Bradley hospitals, and Care New England’s Women and Infants, Kent and Butler hospitals. Lifespan would offer its expertise in neurology, cardiology, orthopedics, pediatrics and cancer treatment, while Care New England would bring specializations in family medicine, obstetrics, gynecology, neonatology and adult psychiatry.

Care New England and Lifespan have explored a possible merger four times since the 1990s. The FTC approved of a deal back in 2007, only for the state to reject it on the grounds that it was incomplete.

Talks on the most recent attempt started in September 2020, a year after similar talks failed. Both companies expected a lengthy regulatory process. Pennsylvania’s StoneBridge Healthcare also made a $550 million buyout offer to Care New England. The healthcare system offered to buy out CNE for $250 million and invest $300 million in capital improvements over six years. Employees' pension plans would also have been fully funded.

CNE rejected it due to its interest in a possible merger with Lifespan. It even signed an exclusivity agreement that barred it and its executives from entering similar talks with other interested buyers.

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