Connecticut officials predict increased patient costs with Nuvance merger

HARTFORD – The Connecticut Office of Health Strategy has forecast increases in inpatient hospital prices for consumers if the Nuvance Health—Northwell Health merger is consummated.

Nuvance Health owns Putnam Hospital Center in Carmel, Vassar Brothers Medical Center in Poughkeepsie, Northern Dutchess Hospital in Rhinebeck along with Danbury Hospital in Connecticut and two other medical facilities in the Constitution State.

While expressing concern that prices will increase, the 70-page report issued by the Connecticut agency was mostly favorable describing the transaction as “positive by nearly every other measure.”

The $20 billion affiliation was proposed last year between the two corporations.

The report noted, “Given Nuvance’s financial struggles, it is likely that without a strategic partner, access and quality at Nuvance’s hospitals could continue to deteriorate.”

The impact report is the final step in the oversight agency’s nine-month review of the proposed merger. It took into account objections by the two health care systems who argued that the new affiliation would not lead to price increases. Specifically, Northwell’s plan to invest $1 billion in Nuvance hospitals and medical services sites could pay off in profits without needing to raise prices, the health systems argued.

Connecticut’s health strategy office felt differently. “Based on a review of Northwell’s recent hospital takeovers in New York, prior acquisitions by Northwell demonstrates significant increases in inpatient hospital prices and commercial revenue following the acquisition.”

If approved, the new network would consist of 28 hospitals and 99,000 employees in New York and Connecticut.

Andrea Rynn, spokeswoman for Nuvance Health, said her corporation was “pleased that our CT CON application to have Nuvance Health affiliate with Northwell Health is moving forward.  As confirmed in the CMIR report, we believe there are many positive factors to this planned affiliation allowing Nuvance hospitals to continue to focus on providing local access to high-quality, high-value healthcare for their patients and communities.”

Last autumn, New York’s Public Health and Health Planning Council signed off on the deal.

Nuvance Health reported to the state that it lost over $220 million during the last two fiscal years, and projects to lose nearly $150 million during its current fiscal year.

The Connecticut report stated, “The affiliation should financially stabilize Nuvance’s hospitals and has the potential to keep certain service lines open that otherwise would close. Additionally, access and quality at Nuvance’s hospitals appear more likely to stay the same or improve if the affiliation with Northwell is effectuated. Northwell’s history of investments in previous acquisitions and its track record of recruiting health care professionals make us optimistic that Nuvance’s hospitals will similarly benefit.”

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