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Agreement reached to preserve labor & delivery services at Sharon Hospital

LEGAL NEWSLINE

Tuesday, December 24, 2024

Agreement reached to preserve labor & delivery services at Sharon Hospital

State AG
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Attorney General William Tong | Ballotpedia

Attorney General Tong has announced an agreement with Northwell Health, Inc. and Nuvance Health to preserve labor and delivery services at Sharon Hospital and strengthen access to local healthcare in Western Connecticut. This agreement resolves the antitrust investigation into the proposed affiliation between the two hospital systems.

Nuvance Health comprises Danbury Hospital, New Milford Hospital, Norwalk Hospital, and Sharon Hospital in Connecticut, as well as three hospitals in New York. Northwell Health is a comprehensive healthcare delivery system that includes 21 hospitals across New York.

The agreement, signed by the attorneys general of both Connecticut and New York, stipulates several enforceable conditions for five years to maintain competition in the healthcare market and ensure affordable access. These conditions include preserving and expanding women’s health services at Sharon Hospital, committing resources towards a unified electronic medical records system for Nuvance's IT infrastructure improvement, and negotiating service reimbursement rates independently for facilities in Connecticut and New York.

“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. This is a strong, enforceable agreement for healthcare access in Connecticut,” said Attorney General Tong. He added that he would continue advocating for stronger measures against harmful impacts of healthcare consolidation.

Under Connecticut law, the Office of the Attorney General receives notice when a hospital or other healthcare provider is involved in a merger or acquisition. The office remains committed to investigating anticompetitive conduct or other barriers limiting affordable access to quality healthcare.

The proposed transaction is also pending resolution before the Office of Health Strategy’s Certificate of Need regulatory process.

Assistant Attorney General Rahul Darwar and Deputy Associate Attorney General Nicole Demers assisted Attorney General Tong with this matter.

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