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Connecticut Hospital Merger Bill to Remain Vetoed

Connecticut state lawmakers will not reintroduce a bill that could open a pathway for for-profit entities to own hospitals in the state, according to a Hartford Courant report.

On July 11, Gov. Dannel Malloy vetoed SB 992, which would have allowed "certain for-profit entities to become members of a medical foundation." This would have allowed hospitals and health systems to structure certain joint ventures — like the one proposed between for-profit Vanguard Health Systems in Nashville, Tenn., and Greater Waterbury (Conn.) Health Network. Vanguard also considered a deal with Bristol (Conn.) Hospital.

Gov. Malloy's veto did not exclusively end the Vanguard-Waterbury transaction, but he said in his veto message that "further consideration is warranted to determine whether such exceptions are appropriate."

Legislators decided not to override any of Gov. Malloy's eight vetoes from this year and did not discuss specific issues with the vetoes, according to the report.

More Articles on Hospital Mergers:
Rutherford Regional, Mission Health Terminate Merger Plan
In the Height of Transactions: Q&A With Franciscan Health System CFO Mike Fitzgerald
Mount Sinai, Continuum Health Partners Sign Definitive Merger Agreement

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