CT approval sought for another proposed hospital consolidation
The merger of two, nonprofit healthcare systems — one that owns Sharon Hospital and three others in Connecticut — is entering the final stretch of securing approvals to combine its operations to form a regional network across two states.
The state Office of Health Strategy will hold a public hearing Wednesday on the planned merger of Danbury-based Nuvance Health and Northwell Health , headquartered in Hyde, N.Y., as it considers backing the merger with a certificate of need .
A certificate of need from the state is required when changes in Connecticut's healthcare landscape are proposed through mergers and the addition or termination of services.
The hearing will be held at 9 a.m. at the state Department of Administrative Services, 450 Columbus Boulevard in Hartford in Plaza North, Hearing Room B. The hearing also will be held virtually via Zoom.
In addition to Sharon Hospital, Nuvance owns Danbury Hospital, Norwalk Hospital and New Milford Hospital in Connecticut and three hospitals in New York.
If approved, the combined health systems will own 28 hospitals and more than 1,000 sites of care and employ 14,500 providers in Connecticut and New York.
The proposed merger, announced in February, got a boost in August when the attorneys general in Connecticut and New York reached an agreement with the two healthcare systems that, among other things, preserved labor and delivery services at Sharon Hospital for at least five years.
Nuvance had sought to curtail labor and delivery services at Sharon Hospital, citing low birth volume, the area's aging population and staffing challenges — a move that drew stiff opposition.
In February, the state denied Nuvance's request to terminate those services.
Activists had said birthing services were not being prioritized, even as the state publicly committed to preserving access to reproductive care.
In addition to expanding health services geared towards women — including maternity services — Connecticut Attorney General William Tong and his counterpart in New York required the two merger partners to establish an unified medical records system.
They also must negotiate reimbursements rates for services independently for its New York and Connecticut facilities.
The merged companies must "comply with the terms of Connecticut's new statute prohibiting all-or-nothing, anti-steering, anti-tiering clauses in network agreements between payors or plan sponsors and providers," according to an August release from Tong announcing the approval. "The purpose of this statute is to enable employers, insurers and other payors to keep costs from skyrocketing as healthcare systems consolidate."
The attorneys general review mergers to ensure they comply with anti-trust laws.
A report from CT Mirror is included in this story.
