At this time last year, it looked like one of the big stories of 2008 would be the merger of the state’s two hospital groups, Lifespan and Care New England. But the merger never happened.

Sure, it was much discussed throughout the year. The hospital chief executive officers and Attorney General Patrick Lynch gave talks about it and everyone in health care contemplated the implications of forging a seven-hospital conglomerate that would dominate the state’s health-care industry.

But today, nearly a year and a half after the merger proposal was first announced, the state regulatory process has not even begun.

So what on earth happened?

In June 2008, the hospitals started delivering the 55,000 documents that comprise their application to the Department of Health and the attorney general.

But the application process stalled amid the kind of quarrels that thrill lawyers and stupefy everyone else. One issue was the wording of certain documents attesting to the accuracy of the application. Another was determining how to give state officials the information they need while protecting confidentiality. To the astonishment of many people, hospital and state officials are still working that out.

But, as 2009 approaches, there seems to be some light at the end of the tunnel. The week before last, the Federal Trade Commission reaffirmed that it found no antitrust violations in the merger plan.

The CEOs of both Lifespan (made up of Rhode Island, Miriam, Bradley and Newport Hospitals) and Care New England (Women & Infants, Butler, and Kent) continue to profess a strong commitment to the merger. Linda Shelton, Lifespan spokeswoman, said the application should be filed “early next year.”

Dr. David R. Gifford, director of health, said he’d be surprised if he didn’t get the application in January. “I heard they’re just working out some simple language — getting t’s crossed and i’s dotted,” he said.

Why did it take so long?

“It’s a big merger and big application,” Gifford said. “There were probably often, in my assessment, too many lawyers in the room.”

— Journal Staff Writer Felice J. Freyer

ffreyer@projo.com