The New York Public Health and Health Planning Council Committee approved a new agreement between Northwell Health and Nuvance Health, making both healthcare systems one step closer to merging.
The agreement, called Agreement of Assurances, came six months after it was announced in February that Nuvance Health — headquartered in Danbury, Conn. — will join Northwell Health — headquartered in New Hyde Park — to form a new integrated regional health system serving communities across New York and Connecticut.
Under the agreement of assurances, signed by offices of the attorney general for both Connecticut and New York, Northwell Health agrees to several enforceable conditions for five years to maintain competition in the healthcare market and affordable access to healthcare.
The conditions, as stated in a release by Connecticut Attorney General William Tong, include preserving, strengthening, and expanding women’s health services, including maternity and labor and delivery services at Sharon Hospital; committing financial and operational resources towards the installation of a unified electronic medical records system; and negotiating rates for reimbursement of services independently for Connecticut and New York facilities.
The purpose of the last statute is to enable employers, insurers, and other payors to keep costs from skyrocketing as healthcare systems consolidate.
“We are pleased to partner with the Connecticut and New York Offices of the Attorney Generals in developing an Agreement of Assurances, which identifies specific post-affiliation activities and commitments that will benefit the communities currently served by Nuvance Health,” Barbara Osborn, vice president of Public Relations at Northwell Health, said. “Under the Affiliation Agreement, Northwell has made a commitment to provide Nuvance Health with capital, expertise, and support to achieve long-term fiscal stability and make critical growth investments.”
Osborn said the agreement is a positive step toward Nuvance Health’s joining Northwell. It affirms the organizations’ common goal of strengthening and improving the health of the communities they serve.
“We deeply appreciate the invaluable support of our partners at Nuvance Health and the work of the offices of the Connecticut and New York Attorneys General,” Michael Dowling, president and CEO of Northwell Health, said in a statement. “This agreement underscores our shared vision to expand and enhance affordable access to healthcare services for patients throughout western Connecticut and the Hudson Valley. We look forward to building on the world class care that Nuvance’s staff members and providers deliver each and every day.”
John Murphy, president and CEO of Nuvance Health, said Nuvance is very grateful for the support and collaboration with Northwell. He said he’s delighted to have reached this agreement with the Connecticut and New York attorney generals.
“This agreement represents continued confidence in our commitment to deliver safe, high-quality care that is affordable and accessible to our communities,” Murphy said in a statement. “With the resources and expertise that Northwell brings to the table, we are confident in our collective ability to strengthen, and eventually expand, the essential services that our Nuvance Health patients rely on today, contributing to healthy and thriving communities across western Connecticut and the Hudson Valley.”
The next step in the merger process is for this proposed affiliation to receive approval from the New York Public Health and Planning Council, which meets on Sept. 12. Then, it must also be approved by Connecticut’s Office of Health Strategy’s Certificate of Need regulatory process.
“We look forward to working with the New York State Department of Health and the Connecticut Office of Health Strategy to complete regulatory review and obtain the approvals that will allow us to close this transaction,” Osborn said.
Until the agreement is approved by both New York and Connecticut regulators, both organizations will continue to operate as they do today.
