Farmington, Conn.-based UConn Health will complete its acquisition of Waterbury (Conn.) Hospital from bankrupt Los Angeles-based Prospect Medical Holdings on March 1, CT Insider reported Feb. 24.
Four things to know:
1. The closing of the deal comes after UConn Health received emergency certificate-of-need application approval from Connecticut’s Office of Health Strategy on Jan. 30. Under the approval, the health system 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.
2. UConn Health must also adopt existing insurance reimbursement rates until new contracts are negotiated, tie rate increases to state cost benchmarks and negotiate future contracts separately from other hospitals. The health system is barred from converting existing outpatient offices to hospital-based billing for three years, preventing patients from being charged higher facility fees.
3. The system received approval from the Connecticut General Assembly in November to acquire the hospital after submitting a $13 million bid. UConn Health said in November it plans to invest about $250 million in Waterbury Hospital over the next five years.
4. Connecticut Gov. Ned Lamont said in January that while the path ahead will have challenges, “UConn Health has shown real leadership by stepping up and prioritizing the health care needs of the Greater Waterbury community.”
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