Advocacy Group Calls for CON in Essent Healthcare, RegionalCare Merger

Public advocacy group Community Lawyer has objected to a decision by Connecticut health officials to not require a certificate of need in regard to the merger of Nashville, Tenn.-based Essent Healthcare and Brentwood, Tenn.-based RegionalCare Hospital Partners, according to a Republican American report.

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Essent owns three hospitals — one in Texas, one in Connecticut and one in Pennsylvania. In September, Connecticut’s Office of Health Care Access determined that the hospital operators did not need to obtain a certificate of need for Sharon (Conn.) Hospital since Essent would continue to own and operate Sharon Hospital, now as a subsidiary of RegionalCare. Connecticut requires a CON any time a healthcare facility experiences a change in ownership or control.

The advocacy group, however, argues that while Essent did not change its name or board, RegionalCare now has the authority to “change the governance policies and the board of directors at any time,” and without a certificate of need, there would be no oversight or public scrutiny of the hospital operator, according to the report. The group has asked the state to reconsider its determination.

Both the OHCA and Connecticut’s Attorney General plan to consider the request and respond to the group, but representatives from both the OCHA and Attorney General’s office suggested a reversal was unlikely.

Related Articles on Essent, RegionalCare:

RegionalCare, Essent to Merge Into 7-Hospital System

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