Northwell Health and Nuvance Health have finally received the green light for their proposed merger, with the Connecticut Office of Health Strategy granting final regulatory approval. This $18 billion deal, which has been in the works since last year, will see ownership of Danbury, Norwalk, and Sharon Hospitals transferred to Northwell Health, creating a 28-hospital system.
As part of the agreement, Northwell will invest at least $1 billion across the Nuvance hospitals in Connecticut and New York over the next five years. The deal also includes specific conditions aimed at constraining growth in commercial prices, adopting more generous financial assistance policies, and maintaining all inpatient clinical services and collective bargaining agreements.
One key aspect of the merger is the development of strategic plans to retain and enhance healthcare services at each hospital, including physician recruitment and resource commitments for clinical service programming. Additionally, the health systems will be working on promoting advanced alternative payment models with payers to improve population health and reduce unnecessary cost or utilization growth.
The settlement also incorporates assurances made by the Connecticut and New York Attorneys General, such as the preservation of labor and delivery services at Sharon Hospital for the next five years. The combined strengths of Northwell and Nuvance are expected to advance the level of care for patients in New York and Connecticut, with a network of 14,500 providers and over 1,000 sites of care.
This merger comes after the approval by the Connecticut Office of Health Strategy, the last hurdle for the deal. The Public Health and Health Planning Council of New York had previously given their approval in September 2024. With the merger now finalized, the integrated health system will have increased capacity to invest in medical advancements and innovation, providing coordinated care across western Connecticut, the Hudson Valley, New York City, and Long Island.
Joining forces with Northwell will give Nuvance Health access to a wealth of resources, including clinical, operating, and financial support. The combined purchasing power will drive greater integration and help build on research, education, and clinical care infrastructure. The agreement will also aid in attracting and retaining top talent, offering professional growth opportunities and new career prospects for medical staff and employees.
As nonprofit organizations, Northwell and Nuvance Health remain committed to providing care to all individuals, regardless of their ability to pay. The merger marks a significant step towards enhancing healthcare services and improving patient outcomes in the region.
