OHS hears case for Nuvance’s merger with Northwell

HARTFORD — The Connecticut Office of Health Strategy held a Certificate of Need hearing on the proposed merger between Northwell Health and Nuvance Health Wednesday, Nov. 6.

Nuvance, parent company of Sharon Hospital, is seeking to merge with Northwell, the largest private health care system in New York state, primarily for financial stability. Nuvance has reported a deficit of $99 million in 2024 and is in need of a partner to survive.

“The risks of trying to pull this off as a standalone system are simply too great,” said Nuvance CEO John Murphy.

Murphy said Northwell was chosen from an initial pool of 25 potential partners. Northwell has had success reviving struggling hospitals in the past and claims to have never closed down a hospital.

He said Northwell “demonstrated a willingness to make a significant capital commitment” to Nuvance’s seven hospitals in Western Connecticut and New York’s Hudson Valley. Murphy praised Northwell’s “distinguished history of turning hospitals around that were facing financial distress.”

If the merger is approved, Northwell will become the parent company of Nuvance Health. Nuvance’s board of directors would continue to oversee its hospitals, but six new board members would be added from Northwell’s team. Northwell will oversee approval of capital and operating costs.

Northwell CEO Michael Dowling explained his organization’s values: “We want to be the best place to receive care and the best place to work.”

Northwell described a model of assimilating cultures with the hospitals it takes over, focusing on engagement with the staff to attract new professionals and minimize turnover.

Dowling said Northwell’s health care network serves more than two million individuals annually and offers medical care from birth to the end of life.

Northwell currently operates 23 hospitals and more than 900 care locations. More than 85,000 individuals are employed by Northwell.

“We are not a hub and spoke system,” said Dowling. “We have a record of expanding care as needed in each local community. We believe in providing care as close to where people live as possible as long as it can be done safely and with the highest quality.”

The community-driven group Save Sharon Hospital was granted intervener status for the Nov. 6 hearing and expressed support for the merger between Nuvance and Northwell.

Sharon Hospital’s Dr. Howard Mortman, labor and delivery specialist since 1991, stated his trust in Northwell to “do what is right for Sharon Hospital and our community.”

Northwell representatives have visited Sharon to meet with the community group several times in the past year to discuss concerns and goals for the future of rural healthcare in the Northwest Corner.

“They do not plan to cut any services and instead plan to grow services at Sharon Hospital,” said Mortman. “[Northwell] has shown they greatly care about Sharon Hospital.”

Dr. David Kurish of Sharon Hospital spoke in favor of Northwell’s plans to increase intensive care services. In 2023, Nuvance applied for a certificate of need to replace the ICU with a progressive care unit.

Kurish said Northwell’s pledge will “lead to fewer patients being transferred” from Sharon Hospital.

Overwhelmingly positive remarks filled the public comment session of the hearing.

State Rep. Maria Horn (D-64) said, “This affiliation is in the best interest of my constituents.” She felt Northwell demonstrated an “impressive record” of investing in community hospitals and praised its commitment to engaging with stakeholders.

Sharon Hospital board chair Richard Cantele said he supported the merger because “hospitals are the cornerstone of our communities” and Northwell will preserve “a long-term future for Nuvance Health and Sharon Hospital.”

Following public comment the hearing was closed. The Office of Health Services will review the filings before making a ruling on the certificate of need.