HARTFORD – The state Office of Health Strategy reached an agreed settlement on Tuesday, April 8 with Nuvance Health and Northwell Health that will save three western Connecticut hospital.
OHS approved the proposed affiliation of the two health systems, where Northwell will invest at least $1 billion across the Nuvance hospitals in Connecticut and New York over the next five years.
Under the agreement, ownership of Danbury, (including the New Milford campus), Norwalk and Sharon hospitals will be transferred to Northwell Health, a 21-hospital non-profit integrated care delivery system in New York.
The two systems filed a certificate of need application on May 31, 2024 and entered settlement negotiations on Jan. 31, 2025 reaching an agreement just 66 days later.
“I’m proud that through dedicated collaboration, a fair agreement has been reached with Northwell Health that benefits patients and providers, while strengthening and stabilizing healthcare throughout Western Connecticut,” said Gov. Ned Lamont. “My administration is appreciative to Dr. (John) Murphy (president and CEO of Nuvance Health) and Michael Dowling, their respective teams, (state Office of Health Strategy Commissioner) Dr. (Deidre) Gifford and the OHS Certificate of Need team for getting this agreement done in an efficient manner that is ultimately in the best interest of Connecticut residents.”
Gifford was also appreciative of the deal getting done.
“This agreement reflects the commitment of all parties to act in the interest of healthcare consumers and providers throughout Western Connecticut,” said Dr. Gifford. “Northwell Health will strengthen the capacity of these hospitals to provide accessible, affordable, high-quality care in the diverse urban, suburban and rural communities they serve.”
State Republican Minority Leader Stephen Harding believes the deal brokered by Lamont’s OHS is a step forward for helping to fix health care in the state.
“Health care in Connecticut must be made more accessible and more affordable,” Harding said. “This deal will help accomplish those goals for western Connecticut residents and health providers.”
The agreement sets conditions safeguarding the interests of Connecticut patients and providers such as price constraints tied in part to the state’s cost growth benchmark. and this agreement requires annual reports detailing Northwell’s progress made toward completion of those investments. The agreement also prohibits any real estate sale leaseback transactions for at least five years. Specific conditions include:
- Constraining growth in commercial prices so negotiated rates do not exceed the average of the state’s Cost Growth Benchmark Target and the Consumer Price Index for Medical Care in New England (CPI-U Medical)
- Adoption of Northwell’s more generous financial assistance policies at Nuvance hospitals
- Maintaining all inpatient clinical services and recognizing all collective bargaining agreements
Developing strategic plans to retain and enhance health care services at each of the hospitals, including physician recruitment and resource commitments for clinical service programming
- Promoting advanced alternative payment models with payers to improve population health, reduce the rate of unnecessary cost or utilization growth, improve access to primary care, address social determinants of health
The settlement also aligns with and incorporates the agreement of assurances Connecticut Attorney General William Tong and New York Attorney General Letitia James reached with the systems in August. That includes the preservation of labor and delivery services at Sharon Hospital for the next five years.
“I continue to prioritize western Connecticut and the northwest corner’s health concerns at the State Capitol, such as keeping the doors of Sharon Hospital’s Maternity Ward open,” Sen. Harding said.
Four New York hospitals currently operated by Nuvance will also join the Northwell system.
