(Hartford, CT) – The Office of Health Strategy (OHS) issued a decision today approving the Emergency Certificate of Need (E-CON) application of University of Connecticut Health Center Finance Corporation (UCHCFC) and its Waterbury Health Corporation (UCHCFC Waterbury) for the transfer of ownership of Waterbury Hospital, and certain other assets and joint ventures of Prospect Medical Holdings (DN 25-32853-ECON).
“The decision serves the needs of patients, families and communities in the Greater Waterbury area,” said Amy Porter, acting commissioner. “Ensuring continued access to quality care for Connecticut residents impacted by the Prospect Medical bankruptcy has been a priority for Governor Lamont and OHS.”
The decision imposes conditions on the transfer of ownership that are designed to address potential areas of concern OHS identified with the transaction. Among other things, these conditions require UCHCFC Waterbury to:
- Provide an initial assessment of the condition of Waterbury Hospital and its operations, as well as a strategic integration plan, within nine months of closing
- Engage the community in both strategic planning and community health needs assessment (CHNA) processes within nine months either independently or in collaboration with the existing Greater Waterbury Health Partnership CHNA process
- Maintain or enhance services offered under the Waterbury Hospital license for at least three years and maintain service levels unless OHS grants prior approval for reductions
“I’m confident we’re moving toward a much stronger and brighter future for the facilities owned by Prospect,” said Governor Lamont. “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.”
The Emergency CON decision also features conditions designed to slow cost growth. They require UCHCFC Waterbury to:
- Adopt all existing reimbursement rates with healthcare payers until new contracts are negotiated to ensure continued access for networks
- Negotiate future rates for Waterbury Hospital separately from any other hospital
- Constrain growth in commercial reimbursements and tie negotiated rates to the Cost Growth Benchmark and the Consumer Price Index for Medical Care in New England
- Maintain existing Waterbury Hospital outpatient, non-hospital physician offices, or any offices resulting from future acquisitions, without converting to hospital-based status for billing or reimbursement purposes for a period of three years. This condition helps protect patients from higher facility fees charged in hospital settings.
The OHS decision allows the applicant to move forward with a proposed plan to re-allocate a limited number of licensed beds. UCHCFC Waterbury must also seek approval from the Department of Public Health (DPH) for the proposed shift which would allow John Dempsey Hospital to operate beds on the Waterbury Hospital campus to support specific services.
The Connecticut Office of the Attorney General and DPH also have regulatory oversight of components of this transaction. Additional conditions may be imposed by one or both of these entities.
All Emergency CON application documents, including today’s decision, may be found online through the CON Portal. Search 32853 under docket number for documents related to this application.