Two New England hospitals have abandoned merger plans after concluding that managed care had not progressed as quickly as anticipated in their market.
Officials at 223-bed Lawrence and Memorial Hospital in New London, Conn., and 125-bed Westerly (R.I.) Hospital concluded that a full merger may not produce the kind of savings that would justify such a deal.
"We felt that maybe we were going too fast," said William T. Christopher, Lawrence and Memorial's president and chief executive officer.
"Some of the emergency that was felt a year, year-and-a-half ago is no longer the case," said Nicholas Stahl, a Westerly spokesman.
Merger talks began last year under a memorandum of understanding between the two hospitals (June 10, 1996, p. 12).
Executives concluded that they may be able to achieve some synergies without giving up their autonomy.