Northwell’s takeover of CT’s Nuvance hospitals includes price constraints, immediate job security

News-Times – Tuesday, April 8, 2024
By Rob Ryser

DANBURY – The $20 billion takeover of Danbury and Norwalk hospitals by health care giant Northwell that was approved by Connecticut on Monday protects local workers from layoffs for one year and includes price constraints to keep increases in step with the local cost of living.

“The agreement sets conditions safeguarding the interests of Connecticut patients and providers, such as price constraints tied in part to the state’s cost growth benchmark,” reads a statement by the state Office of Health Strategy, referring to Northwell’s takeover of Danbury-based Nuvance Health. “As part of this affiliation, Northwell will invest at least $1 billion across the Nuvance hospitals in Connecticut and New York over the next five years, and this agreement requires annual reports detailing Northwell’s progress made toward completion of those investments.”

The health strategy office’s approval of the Northwell-Nuvance affiliation creates a 28-hospital health care system in New York and Connecticut, with 1,000 health care sites and a network of 14,500 providers. The megadeal not only “unlocks opportunities for enhanced services, cutting-edge research, staff education and expanded employment” but bails out Nuvance, which has been bleeding hundreds of millions in loses since the end of the pandemic.

Frailyn Nunez, a 19-year-old Danbury resident, faces firearm, threatening, assault and other offenses stemming from alleged road rage and domestic violence incidents on March 27, 2025.
“There is not going to be any loss of jobs for at least the first year, so individuals are guaranteed of their positions; but over the longer term, we expect this (affiliation) to increase jobs, not lessen jobs,” said Dr. John Murphy, president and CEO of Nuvance, which also runs hospitals in New Milford, Sharon, and three Hudson Valley towns in New York.

Murphy, who spoke with Hearst Connecticut Media Group after a breakfast on Tuesday with business leaders in Danbury where Gov. Ned Lamont was the keynote speaker, said the affiliation with Northwell was expected to help Nuvance “accelerate our growth.”

“If anything, I think there will be additional hiring,” Murphy told HCMG on Tuesday. “But we don’t anticipate any layoffs.”

The affiliation agreement, which was announced Tuesday, was hailed by state and local leaders.

“(A) fair agreement has been reached with Northwell Health that benefits patients and providers, while strengthening and stabilizing healthcare throughout western Connecticut,” Gov. Ned Lamont said in a prepared statement. “(T)his agreement (was) done in an efficient manner that is ultimately in the best interest of Connecticut residents.”

Danbury Mayor Roberto Alves agreed.

“We’re excited about this investment in Danbury Hospital,” Alves said in a statement. “Northwell brings new opportunities, new technologies, and access to resources that our community will benefit from. … I’m confident this will move this forward without disrupting the quality care that our residents receive.”

The state health strategy office in negotiations with the two health systems over the past year secured an agreement that prices would not climb exorbitantly after the merger but would be in line with two cost-of-living indexes in Connecticut.

“Specific conditions include constraining growth in commercial prices so negotiated rates do not exceed the average of the state’s cost growth benchmark target and the consumer price index for medical care in New England,” the state health strategy office said.

For example, the state’s growth benchmark target was set at 2.9 percent for 2023, 2024 and 2025; the target was adjusted to 4 percent in 2024 to account for inflation. New England’s consumer price index for medical care was 3.3 percent for 2024.

The merger’s goal is to “take patient care and services to an even higher level,” said Northwell’s top executive.

“Northwell is committed to ensuring that Nuvance Health continues to deliver high-quality care in local communities for the long-term,” said Michael Dowling, president and CEO of Northwell Health.

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