Connecticut hospitals seek to consolidate under 1 license to cut costs, improve billing

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Eastern Connecticut Health Network in Manchester is seeking approval to consolidate two of its hospitals under a single license to save money and streamline administrative processes, according to The Journal Inquirer.

The health system said it wants to eliminate Vernon, Conn.-based Rockville General Hospital's license, making it a campus of Manchester Memorial Hospital. 

Daniel DelGallo, ECHN's chief strategy officer, said patients treated at both hospitals currently have separate accounts, which complicates billing processes and makes it harder for providers to access patient medical records. 

Under a single license, the two hospitals would be able to maintain one patient account to improve processes. A single license would also cut duplicate expenses, including audit and accreditation fees, the health system said.

ECHN said it estimates the move would reduce administrative costs by about $106,000 annually. It also said the consolidation will not result in a reduction in services. 

The consolidation needs approval from state regulators. 

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