State Approval Delaying Acquisition of Waterbury Hospital by Yale New Haven Health

Title: State Approval Delay Threatens Survival of Connecticut Hospitals

Earlier this year, Dr. David Hill testified in favor of a major acquisition he felt was crucial to the survival of the hospital he’s worked at for 26 years — a deal for Yale New Haven Health to purchase Waterbury Hospital, where Hill is an attending physician, and hospitals in Manchester and Vernon.

But seven months later, the agreement is still awaiting sign-off by the state Office of Health Strategy, despite twice clearing federal antitrust requirements and receiving no opposition at the public hearing Hill attended in April. And conditions at the three hospitals — which suffered a devastating cyberattack in August and owe vendors millions of dollars — are decidedly worse.

“It’s been incredibly frustrating to me that the CON process has taken so long,” state Rep. Jason Doucette, D-Manchester, said. “Let me be clear about this: the CON process is broken. It’s a quasi-legal, quasi-judicial process that needs to be reviewed.”

Records show that the YNNH/Prospect deal has already taken longer than several other Connecticut hospital mergers, raising concerns about the hospitals’ ability to survive without a speedy takeover. As the months pass, hospital executives, legislators, and local officials say the threat of closure is growing, with the Prospect hospitals owing more than $40 million to vendors and physicians, and in taxes.

Surgeries have been postponed, contracts with healthcare providers are in jeopardy, and the hospitals are struggling financially. Lawmakers are calling for an overhaul of the certificate of need process to expedite the approval of the deal.

Mayor Dan Champagne of Vernon criticized the state for the delay, stating that it has put the hospitals in a precarious position. State leaders have not offered a firm estimate for when a decision could be rendered on the deal, but legislators are vowing to examine the certificate of need process and explore changes during the upcoming legislative session.

The prolonged approval process has raised concerns about the potential closure of the hospitals, with healthcare providers warning that the hospitals may not survive if the deal falls through. Dr. Saqib Naseer, a cardiologist, expressed worries that Yale New Haven Health may walk away from the deal, leaving the hospitals with no other buyer.

The uncertainty surrounding the approval of the acquisition is causing anxiety among healthcare providers, patients, and local officials. The state’s handling of the situation has sparked calls for reform of the certificate of need process to prevent similar delays in the future.