Jepsen seeks info on hospital merger
HARTFORD, Conn. (Legal Newsline) - On Friday, Connecticut Attorney General George Jepsen asked that two hospitals proposing a joint venture submit a detailed application for state review and approval.
Jepsen made the request in a letter to St. Mary's Health System Inc. and LHP Hospital Group Inc. on behalf of his office and the state Department of Public Health, Office of Health Care Access. St. Mary's is a Waterbury hospital that operates on a non-profit basis. It has 60 days to submit the application.
Hearings are expected to begin in the fall, with the deadline for a decision set four months after the application is made and determined to be complete unless an extension is agreed upon.
"Access to good quality medical care is a necessity in Connecticut. Our review will ensure this continues to be the case in Waterbury," Jepsen said.
The state is seeking a detailed and comprehensive report of information about the proposed sale. Jepsen has asked the hospital to submit a detailed financial analysis of the transaction, including assessments of the fair market value of the hospitals assets and whether the deal will put them at risk and a summary of the deal and any terms and conditions imposed. St. Mary's must explain why it decided to accept this particular offer and must detail other alternatives or offers that were rejected.
Connecticut officials are especially interested in how the ownership change will affect its patient populations, whether it will change medical services offered at the hospital's main campus and Waterbury and any satellite locations and how it will make sure the community it serves has continued access to affordable healthcare.