WASHINGTON (Reuters), – On Thursday, the U.S. Federal Trade Commission stated that it would file a lawsuit in an effort to block the merger of two major Rhode Island health care providers, Lifespan Corp.

It voted against the deal unanimously. The Rhode Island attorney general’s Office and it expressed concern that the merger could create an “outsized health care conglomerate.”

Holly Vedova, Director of FTC Bureau of Competition, stated that the proposed merger was a poor deal for patients. She also said that it would lead to higher hospital bills and lower quality of care.

According to the FTC, the complaint will allege that the agreement would provide the combined company with at least 70% of Rhode Island’s market for hospital-based treatments and a similar share for behavioral health services. 

James Fanale, president of Care New England stated in a statement that both companies had been disappointed. I will state that it is clear that the companies were disappointed. We have worked hard over many years to achieve this. He said that while we believed it was right, now we need to find a better way forward.

The company spokeswoman declined to confirm whether the decision was made to end the transaction.