Milford (Conn.) Hospital is taking various steps to improve its financial picture, including budget cuts, as Yale New Haven (Conn.) Health seeks to integrate the facility into its system, according to a New Haven Register report.
This summer, Yale New Haven Health announced that Bridgeport (Conn.) Hospital is in talks to acquire Milford Hospital. Both hospitals have agreed to pursue the merger, and involved parties have signed an asset purchase agreement and will seek approval from state regulators.
Milford Hospital is making budget cuts to keep the hospital solvent until the transaction can be approved and to allow the hospital to be a desirable merger partner, a hospital spokesperson told the New Haven Register.
"These kinds of approvals can take anywhere from nine to 12 months," the spokesperson said. "The hospital has faced financial challenges long before this and these changes were needed to ensure our financial stability until regulators rule on this. Our goal is to avoid bankruptcy and closure."
According to the report, the hospital is making incremental pay cuts to employees earning more than $50,000 annually, and this summer stopped making matching contributions to employees' 403(b) retirement plans. Other changes include cuts to excess accumulated vacation time, as well as agreements with certain contractors who performed work before August that would reduce hospital spending.
If the transaction is approved, Bridgeport Hospital would take on significant debt associated with Milford Hospital, and Milford Hospital's more than 600 employees would become Bridgeport Hospital employees.
Read the full report here.
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