Conn. Approval of Nuvance-Northwell Deal Includes Conditions
The Connecticut Office of Health Strategy has reached a settlement with Nuvance Health and Northwell Health approving the proposed affiliation of the two health systems.
Under the agreement, ownership of Danbury, (including the New Milford campus), Norwalk and Sharon Hospitals will be transferred to Northwell Health, a 21-hospital nonprofit 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 66 days later.
The agreement sets conditions such as price constraints tied in part to the State’s cost growth benchmark. As part of this affiliation, Northwell will invest at least $1 billion across the Nuvance hospitals in Connecticut and New York over the next five years, 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 healthcare services at each of the hospitals, including physician recruitment and resource commitments for clinical service programming; and
• 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.
“This agreement reflects the commitment of all parties to act in the interest of healthcare consumers and providers throughout Western Connecticut,” said Commissioner Deidre Gifford, M.D., M.P.H., in a statement “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.”
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, including the preservation of labor and delivery services at Sharon Hospital for the next five years. Four New York hospitals currently operated by Nuvance will also join the Northwell system.
