Farmington, Conn.-based UConn Health has received an emergency certificate-of-need application approval from Connecticut’s Office of Health Strategy to acquire Waterbury (Conn.) Hospital from bankrupt Los Angeles-based Prospect Medical Holdings.
OHS cleared the path Jan. 30 for UConn Health’s Waterbury Health Corp. to take over the hospital and other certain Prospect Medical assets and joint ventures, according to a news release.
“I’m confident we’re moving toward a much stronger and brighter future for the facilities owned by Prospect,” Connecticut Gov. Ned Lamont said in the release. “While the path ahead is not without challenges, UConn Health has shown real leadership by stepping up and prioritizing the health care needs of the Greater Waterbury community.”
Under the approval, UConn Health must maintain or improve existing services for at least three years, engage with the community in health planning efforts, and provide an assessment of Waterbury Hospital and its operations, including a strategic integration plan, within nine months.
OHS is also requiring UConn Health to adopt existing insurance reimbursement rates until new contracts are negotiated, tie rate increases to state cost bench marks and negotiate future contracts separately from other hospitals. The health system is prohibited from converting current outpatient offices to hospital-based billing status for three years to protect patients from higher facility fees.
Employee morale and job applications have also surged at Waterbury Hospital as the facility awaits final state approval for its sale to UConn Health, CT Insider reported Jan. 30.
“Waterbury reported that there was a marked increase in interested nursing applicants following the announcement of the sale,” Suzanne Koenig, the bankruptcy court-appointed patient ombudsman monitoring care at the hospital, told the publication.
UConn Health shared plans in early December to invest around $250 million in Waterbury Hospital over the next five years, in partnership with the state. The health system received approval from the Connecticut General Assembly to purchase the hospital in mid-November after it submitted a $13 million bid to take it over.
“This approval marks an essential step toward preserving and strengthening healthcare services in the Greater Waterbury region,” a spokesperson for UConn Health said in a statement shared with Becker’s. “This decision along with the support of Governor Lamont and the state of Connecticut allows UConn Health to partner with the wonderful employees and providers at Waterbury hospital to bring world-class healthcare to the surrounding community.”
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
