Connecticut Attorney General William Tong has reached an agreement with Northwell Health and Northwell Healthcare (Together called Northwell), as well as Nuvance Health, to ensure the continuation of maternity and labour services at Sharon Hospital.
The deal, which addresses antitrust concerns over the proposed affiliation between the two healthcare systems, aims to maintain competition and affordable healthcare access in the Western Connecticut region.
As per the agreement, Northwell is required to commit to several enforceable conditions for five years.
These conditions include the preservation, expansion, and strengthening of various women's health services, particularly maternity and labour/delivery services at Sharon Hospital.
Northwell will also invest in a unified electronic medical records system to improve Nuvance's IT infrastructure and data security.
Furthermore, the agreement stipulates that Northwell Health will negotiate reimbursement rates independently for its New York and Connecticut-based healthcare facilities.
This is also in line with Connecticut's new statute designed to prevent cost spikes in healthcare by prohibiting certain clauses, including anti-steering, anti-tiering, and all-or-nothing, in network agreements between payors/plan sponsors as well as providers.
Tong said: “Miles and minutes matter when it comes to labour and delivery, and I am pleased that Northwell has committed to preserving affordable, lifesaving care—especially maternity care—for Western Connecticut.
“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.”
Assistant Attorney General Rahul Darwar and Deputy Associate Attorney General Nicole Demers, who heads the Antitrust Section, assisted Attorney General Tong in this regard.
The Office of the Attorney General in Connecticut is tasked with reviewing mergers or acquisitions involving local healthcare providers.
It is dedicated to investigating and acting against any conduct that could hinder affordable and quality healthcare access.
The proposed transaction between Northwell Health and Nuvance Health is also awaiting a decision from the Office of Health Strategy's Certificate of Need regulatory process.
