Yale New Haven Health (YNHHS) has signed a letter of intent to acquire Connecticut health systems Waterbury HEALTH and Eastern Connecticut Health Network (ECHN) from Prospect Medical Holdings.
The proposed deal would include three hospitals and the health systems’ other related businesses, real estate assets, physician clinic operations and outpatient services, according to the Thursday announcement.
The organizations are aiming to complete the transaction later this year, subject to regulatory approvals.
“Innovation has become a watchword for a post-pandemic healthcare environment, and we are all exploring clear opportunities to enhance access to high-quality care while driving down costs,” YNHHS CEO Marna Borgstrom said in a statement. “While this is at a very early stage, our goal is to sustain critical access to vital healthcare services directly in these local communities.”
Together, YNHHS would pick up roughly 2,900 employees across the two health systems. YNHHS said in the announcement that it is “focused” on preserving local jobs, employee pensions and understanding the future capital needs of Waterbury HEALTH and ECHN’s facilities as it works to lock in the deal in the coming months.
“Working with our partners at the Yale School of Medicine, we believe this could create a seamless and integrated delivery system that would serve the best interests of our patients in the most cost-effective manner possible throughout the state of Connecticut and the entire region,” Christopher O’Connor, president of YNHHS, said in a statement.
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YNHHS is already the largest healthcare system in Connecticut with five hospitals, numerous specialty networks and hundreds of employed physicians within its hospitals and the community.
YNHHS said it’s planning an affiliation of the systems’ Waterbury Hospital, Manchester Memorial Hospital and Rockville General Hospital similar to its arrangements with Greenwich and Bridgeport Hospitals and Lawrence + Memorial Health. Both systems would be transferred to nonprofit status upon closure of the deal.
“Waterbury is deeply committed to caring for our communities and adapting to the rapidly evolving healthcare landscape," Justin Lundbye, M.D., president and CEO of Waterbury HEALTH, said in a statement. "Along with ECHN, we are proud of what we’ve accomplished, including investing millions of dollars in our communities, preserving jobs, increasing quality ratings, and being leaders in Connecticut’s response to the pandemic. We are confident YNHHS will continue this legacy.”
Shortly after announcing the letter of intent with YNHHS, Prospect Medical Holdings unveiled another planned sell-off of Crozer Health in Pennsylvania to ChristianaCare Health System. That deal is targeting a similar deadline and would see four hospitals and a total 4,000 employees move over to the Delaware-based system.