Connecticut approves sale of two hospitals

After months of work, Hartford HealthCare has secured the approval of Connecticut state regulators to buy two hospitals.

The Connecticut Office of Health Strategy announced this week that it is signing off on Hartford HealthCare’s acquisition of Manchester Memorial Hospital and Rockville General Hospital. Hartford submitted an $86.1 million bid to buy the hospitals from Prospect Medical Holdings, which filed for bankruptcy in January.

Connecticut regulators imposed some conditions on the transaction, including a commitment from Hartford HealthCare to maintain services at the facilities and other stipulations.

Connecticut Gov. Ned Lamont hailed the agreement with Hartford HealthCare to buy the hospitals.

“This is a positive outcome to an initially challenging situation,” Lamont said in a statement. “Ensuring quality services remain both accessible and affordable for our families and communities has always been one of my top priorities, and I am very happy that Hartford HealthCare has made this commitment to Manchester, Vernon and the surrounding communities.”

While the deal has been in the works for some time, state officials completed their review 40 days after deeming the application for a “Certificate of Need” to be complete.

Amy Porter, acting commissioner of the Connecticut Office of Health Strategy, said the agreement maintains essential services to the region.

“The expedited decision ensures continuity of care for Eastern Connecticut residents, while imposing specific conditions designed to ensure preservation of healthcare access and quality and control cost growth,” Porter said in a statement.

Two other Connecticut state offices - the Office of the Attorney General and Department of Public Health - also have oversight of healthcare transactions. Both offices could impose additional conditions, officials said.

But the Office of Health Strategy signing off on the deal marks a significant milestone.

Hartford HealthCare has touted its record of improvement in previous acquisitions and its roots as a Connecticut-based system.

“Every hospital that has joined Hartford HealthCare has seen measurable improvements — including top safety ratings, expanded access to care close to home, cutting-edge technology, and the recruitment of world-class clinicians,” the system said in a statement.

Hartford must comply with a number of conditions, including assessing the condition of both Manchester and Rockville hospitals and developing an integration plan within nine months. Hartford must also work with community leaders on an assessment of the area’s health needs within nine months.

The health system must also maintain service levels at the hospital for three years from the closing of the deal, including a 24/7 emergency department in Vernon. State officials must be notified of any relocation of inpatient beds or outpatient services withing 30 days.

The Office of Health Strategy also imposed a mandate to maintain existing reimbursement rates with healthcare payers.

A federal bankruptcy court had previously signed off on Hartford HealthCare’s purchase of the two hospitals.

Manchester Memorial Hospital, a 249-bed community hospital, is based in Manchester, about 10 minutes east of Hartford. Rockville General Hospital is a 100-bed facility.

Prospect Medical Holdings acquired the two hospitals, operated under the umbrella Eastern Connecticut Health Network, in 2016.

With the approval of the acquisition, Hartford’s footprint expands to nine hospitals.