Connecticut approves merger of Northwell, Nuvance health systems

Sharon Hospital

Archive photo

Connecticut approves merger of Northwell, Nuvance health systems

Connecticut’s Office of Health Strategy approved a merger between Northwell Health, a large New York-based health system, and Nuvance Health, which owns Danbury, Norwalk, Sharon and New Milford hospitals in Connecticut, as well as three hospitals in New York, according to a Tuesday announcement by the agency.

The two systems now have to complete the step of formally joining the entities together under the Northwell Health banner, a spokesperson for Nuvance Health said.

Northwell isn’t directly paying to buy the Nuvance Hospitals, per se, resulting in a technical purchase price of $0. Instead, the New York-based health system has agreed to invest $1 billion in Nuvance’s Connecticut and New York hospitals over the next five years, with annual reporting on the progress of those investments.

Those investments will go toward a number of capital projects and the implementation of a new electronic medical recordkeeping system, according to Boyd Jackson, director of legislation and regulation at OHS.

“No money is being transferred directly within the affiliation deal,” Jackson wrote in an emailed statement, explaining that, instead, “Northwell has made promises of capital investment.”

Nuvance Health has been struggling financially for some time, posting a $99 million deficit in fiscal year 2024, which executives chalked up to, among other factors, increasing costs and the aftereffects of the COVID-19 pandemic.

John Murphy, a physician and the chief executive officer of Nuvance Health, said the merger will help improve health care for the system’s patients.

“By joining forces with Northwell Health, we can strengthen and enhance our ability to meet the needs of patients across Connecticut and the Hudson Valley for generations to come,” Murphy said.

During a public hearing on the merger in November, Murphy said Nuvance’s financial challenges had reached a point where the system could no longer survive without the support of a parent company.

“Nuvance Health today finds itself at an inflection point, where continuing its current course threatens the long-term viability of our facilities and programs and the future of health care in Western Connecticut,” stated Murphy in pre-filed testimony for the November hearing. “We firmly believe the time has come to join a larger health system.”

The combined health system will have 28 hospitals, over 1,000 care sites and a network of 14,500 providers across New York and Connecticut, according to the statement from Nuvance.

The state’s approval hinges on certain conditions, laid out in an agreed settlement. These conditions include the $1 billion investment in Nuvance hospitals. The agreement also prohibits, for five years, any real estate sale-leaseback transactions, the type of deal that many critics say drained the resources from the Prospect Medical Holdings-owned Connecticut hospitals while enriching the health system’s private equity backers.

Northwell also reached an agreement in August with Attorney General William Tong to maintain labor and delivery services at Sharon Hospital for the next five years.

Northwell Health is the largest private employer in New York state, according to the company’s website, and owns 21 hospitals and 900 ambulatory sites. The health system does not currently own any hospitals outside of New York.

Health care consolidation — the trend of big health systems buying up hospitals — has been shown to lead to cuts in critical services, as well as higher prices. But the proposed merger with Northwell received significant public support.

During a hearing in November, several people from the hospitals’ surrounding communities expressed hope that Northwell could help strengthen the Connecticut hospitals. Those testifying included many Nuvance employees, as well as members of Save Sharon Hospital, a community group that has fought against service cuts at Sharon Hospital.

During the same hearing, Mark Solazzo, the chief operating officer at Northwell Health, said that the company intends to address financial challenges at Nuvance by, among other tactics, increasing staff retention, reducing reliance on outsourced contractors and driving down costs through collective purchasing.

“We have never closed a hospital, and we don’t intend to,” Solazzo said.

Katy Golvala is CT Mirror’s health reporter. This story was originally published by the CT Mirror.

Latest News

Out of the mouths of Ukrainian babes

To escape the cruelties of war, Katya finds solace in her imagination in “Sunflower Field”.

Krista A. Briggs

‘I can sum up the last year in three words: fear, love, hope,” said Oleksandr Hranyk, a Ukrainian school director in Kharkiv, in a February 2023 interview with the Associated Press. Fast forward to 2025, and not much has changed in his homeland. Even young children in Ukraine are echoing these same sentiments, as illustrated in two short films screened at The Moviehouse in Millerton on April 5, “Once Upon a Time in Ukraine” and “Sunflower Field.”

“Sunflower Field,” an animated short from Ukrainian filmmaker Polina Buchak, begins with a young girl, Katya, who embroiders as her world becomes unstitched with the progression of the war. To cope, Katya retreats into a vivid fantasy world, shielding herself from the brutal realities surrounding her life, all while desperately wanting her family to remain intact as she awaits a phone call from her father, one that may never come.

Keep ReadingShow less
William F. Buckley Jr.: a legacy rooted in Sharon
Provided

Sam Tanenhaus, when speaking about William F. Buckley, Jr., said he was drawn to the man by the size of his personality, generosity and great temperament. That observation was among the reasons that led Tanenhaus to spend nearly 20 years working on his book, “Buckley: The Life and Revolution That Changed America,” which is due out in June. Buckley and his family had deep roots in Sharon, living in the house called Great Elm on South Main Street, which was built in 1812 and bought by Buckley’s father in 1923.

The author will give a talk on “The Buckleys of Sharon” at the Sharon Historical Society on Saturday, April 12, at 11 a.m. following the group’s annual meeting. The book has details on the family’s life in Sharon, which will, no doubt, be of interest to local residents.

Keep ReadingShow less
Janet Marlow’s pet sounds

Janet Marlow recording Pet Acoustics.

Alan Brennan

Does your pet suffer from anxiety and stress? Musician, pet owner, and animal lover Janet Marlow may have sound solutions. With a background in classical music and a profound interest in the auditory world of animals, Marlow has dedicated her career to understanding how sound impacts emotional and physiological states in pets.

“I’ve always been deeply connected to music. It’s in my DNA as a fifth-generation musician. But it wasn’t until 1994, after moving from New York City to Connecticut, that I discovered how music could impact animals.” Marlow said, “I decided to live in Litchfield County because of the extraordinary beauty of nature that inspired so many compositions.” It was when Marlow adopted a black-and-white cat named Osborn that something remarkable happened. “Every time I played the guitar, Osborn would come to my side and relax. It was clear that the music was affecting him, and this sparked my curiosity,” she said. This sparked Marlow to start investigating how animals perceive sound and whether music could be used to improve their well-being.

Keep ReadingShow less