SHARON—The long battle to retain labor and delivery services at Sharon Hospital appears to have reached a happy outcome this week, following the announcement of an agreement with Northwell and Nuvance Health to strengthen access to local healthcare in Western Connecticut.
State’s Attorney General William Tong announced the resolution of the antitrust investigation into the proposed affiliation between the two hospital systems. The Nuvance network comprises Danbury Hospital, New Milford Hospital, Norwalk Hospital and Sharon Hospital in Connecticut, as well as three hospitals in New York, while Northwell Health is a comprehensive, integrated health care delivery system with 21 hospitals across New York.
When the Attorney General’s office receives notice that a Connecticut hospital, hospital system or other health care provider is a party to a merger or acquisition it investigates any anticompetitive conduct or barriers that would limit affordable access to quality healthcare.
Under the agreement of assurances signed by the Connecticut and New York attorneys general offices, Northwell Health agrees to several conditions enforceable for five years. These include preserving, strengthening and expanding women’s health services and committing the resources to improve Nuvance’s IT infrastructure and data security.
Rates for imbursement of services will be negotiated independently for Connecticut and New York facilities and compliance with Connecticut’s new health care statute is required. It is designed to enable employers, insurers and other payors to keep costs from skyrocketing as healthcare systems consolidate.
“We see this as a new beginning,” said Victor Germack, vice president of Save Sharon Hospital. “I hope it is the end of it [the attempt of reduce services at Sharon Hospital] and the beginning of a constructive relationship with Nuvance. My sense is these new guys will take over and run it as a sophisticated, professional operation.”
“We see this as a new beginning. I hope it is … the beginning of a constructive relationship with Nuvance.”
—Victor Germack, vice president of Save Sharon Hospital. “
He added that representatives of Save Sharon Hospital were to meet with hospital administrators Thursday. “They want to get our views,” he said, “which is a very good step because it shows they are interested in our community.”
The future of labor and delivery services at Sharon Hospital have been challenged since 2018 when the then owner, New York-based nonprofit Health Quest, reported an annual loss of $2.5 million. Health Quest proposed closing the birth center in 2018 sparking formation of Save Sharon Hospital.
Health Quest and Western Connecticut Health Network (WCHN) applied to the Connecticut Office of Health Strategy (OHS) to merge their two organizations. OHS granted the merger, which eventually produced Nuvance Health. With its approval, OHS required that Sharon Hospital maintain all services, including maternity, for the next five years, a commitment that ended in April of this year.
Citing financial problems and low numbers of births at the hospital, Nuvance Health unveiled its transformation plan for Sharon Hospital in September 2021. The plan included closing maternity services within a year. Drastic cuts to the surgery department were also outlined.
Save Sharon Hospital argued that, rather than closing down vital services, Nuvance should use the remaining time in its five-year commitment to find sustainable solutions to maintain full-service operation.
Last winter the Connecticut Office of Health Strategy determined that maternity services must be offered at Sharon Hospital, denying Nuvance’s application in their Final Decision.
Germack noted that the hospital has been sold a number of times over the years. “It’s a long haul for rural hospitals,” he said. “We live in hope and look forward to working with these folks. We see it as a partnership.”
Tong, too, sees the issue that will require vigilance. “Miles and minutes matter when it comes to labor and delivery, and I am pleased that Northwell has committed to preserving affordable, lifesaving care—especially maternity care—for Western Connecticut,” he said in a statement. “This is a strong, enforceable agreement for healthcare access in Connecticut. I will continue to aggressively pursue all available tools, and to advocate for even stronger measures, to address any harmful impacts of healthcare consolidation for Connecticut families.”
The proposed transaction is still pending resolution before the Office of Health Strategy’s Certificate of Need regulatory process.
