Northwell agreement awaits approval by Connecticut
An application to turn Putnam Hospital in Carmel and the six other Nuvance healthcare facilities into affiliates of Northwell Health could earn approval within two months, according to the hospital’s president.
Speaking Tuesday (March 18) to the Putnam County Legislature’s Health Committee, Dr. Mark Hirko said the companies are awaiting approval from regulators in Connecticut, where Nuvance has four hospitals. They received “tacit” approval from New York State in September, he said.
Instead of merging with Nuvance, which operates Vassar Brothers Medical Center in Poughkeepie and Northern Dutchess Hospital in Rhinebeck, the much-larger Northwell ($17 billion in annual revenue and 21 hospitals) would become its corporate parent.
Nuvance faces increasing financial pressure because of sustained operating losses. Despite $1 billion in annual revenues, it lost $220 million during the two most recent fiscal years before its May 2024 application to merge with Northwell, and it was projected to lose nearly $150 million in 2024. Putnam Hospital lost $32.5 million for the fiscal year ending Sept. 30, 2023, and Vassar Brothers, $40 million.
In February, Connecticut’s Office of Health Strategy concluded that Nuvance’s application to join Northwell will result in “materially higher” median prices for patients but “the transaction appears to be positive by nearly every other measure” because of Nuvance’s financial struggles.
Northwell says Nuvance will gain financial stability and funding for capital upgrades, access for patients to a larger pool of primary-care doctors and specialists, and integration with Northwell’s electronic health records system.
“We are anticipating good news [from Connecticut] in regard to this affiliation within the next four to six weeks,” Hirko told the Putnam Legislature.
During his presentation, Hirko outlined developments at Putnam Hospital, which has been beset by the layoffs of nurses, the yearlong closure of its maternity ward and complaints from employees about low pay.
The maternity ward reopened in February 2023 and is projecting 100 childbirths this year, said Hirko. In addition, the hospital has more demand for its cancer treatment and primary care services.
Putnam Hospital has received two consecutive “A” patient safety ratings from the Leapfrog Group, a nonprofit watchdog, after receiving a “C” 18 months ago, he said. Wait times have also improved “to the point where people are recommending us at much higher levels than we’ve ever seen before,” said Hirko.
