Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Hartford HealthCare calls off merger talks with Day Kimball, blames pending Medicaid cuts

Hartford (Conn.) HealthCare has called off merger talks with Putnam, Conn.-based Day Kimball Healthcare due to pending state Medicaid cuts, according to a Hartford Courant report.

In September, Connecticut Gov. Dannel Malloy announced he will make more than $63 million in new cuts to hospital Medicaid payments.

"This reckless slashing of Medicaid makes it difficult for HHS to create a path forward with Day Kimball Healthcare right now. Both our organizations have just taken a gut punch," James Blazar, Hartford HealthCare's senior vice president overseeing strategy, told the Hartford Courant.

Day Kimball has been one of the less financially healthy hospitals in Connecticut, and the affiliation with Hartford HealthCare represented an opportunity for the hospital to strengthen its finances.

Not all hope for the deal is lost. Mr. Blazar told the Hartford Courant that if state funding improves, Hartford HealthCare might be interested in entering into an affiliation agreement with Day Kimball.

More articles on healthcare industry transactions:

8 recent hospital transactions and partnerships
Prime completes takeover of NJ health system
26 hospital transactions and partnerships in September

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars