Community September 28, 2011
YNHH, Hospital of Saint Raphael sign definitive agreement, begin review process
9/28/11 — Yale-New Haven Hospital (YNHH) and the Hospital of Saint Raphael (HSR) have announced the signing of a Definitive Agreement for YNHH to purchase the assets of HSR creating one hospital with two campuses. The Definitive Agreement further defines an approach that will enhance healthcare quality, access and efficiency for Greater New Haven and the broader region.
Now that the appropriate due diligence has been completed and the parties have reached agreement, the regulatory review of the transaction by appropriate state and federal agencies will be initiated. During the regulatory approval process, the Connecticut Attorney General's Office, the Connecticut Office of Health Care Access and the Federal Trade Commission will review the proposed transaction. During that time, the two hospitals will continue to operate independently.
"We continue to be excited about the benefits to our communities and region that will arise out of the integration of services between Yale-New Haven and Saint Raphael’s," said Marna P. Borgstrom, president and CEO of YNHH. "Since we announced the Letter of Intent in March to integrate the two hospitals, we have been encouraged by the broad-based support from the community for this proposal. From elected, regional and business leaders, employees, physicians and patients, there has been excitement for what this will mean for the future of health care in our community and the region."
"The Definitive Agreement between our organizations is a significant milestone towards realizing opportunities to better serve and care for greater New Haven and the broader region," echoed Christopher M. O’Connor, president and CEO of HSR. "By signing the Definitive Agreement, both hospitals have concluded that this integration can succeed in the new healthcare environment and is in the best interests of both organizations, and the communities and the region we serve."
Under the language of the Definitive Agreement:
Yale-New Haven will purchase the assets of the Hospital of Saint Raphael, creating one integrated hospital with continued access to care at both campuses;
The Saint Raphael campus will continue to provide medical care consistent with the Ethical and Religious Directives for Catholic Health Care Services;
HSR liabilities will be addressed, including funds to help address its Church Plan pension shortfall; and
YNHH will make investments in the HSR campus and grow clinical activity.
The Definitive Agreement provides for a two-campus hospital that will deliver sophisticated care across a wide spectrum of primary and specialty services and provide Yale-New Haven with the capacity necessary for growth. Significant cost and operational efficiencies will be created by reducing the redundancy of clinical and capital investments, and by better coordinating care. In addition, by creating an integrated delivery network, the region will be well-prepared to manage the changes inherent in healthcare reform.
"We are truly excited about this next step towards possible integration between these two exceptional organizations, which will enable us to better serve the patients we are privileged to serve," Borgstrom said.
For the latest news and updates related to the integration of Yale-New Haven Hospital and Hospital of Saint Raphael, please visit www.newstory.org.
