AG Signs Off on YNHH-St. Raphael's Merger
Attorney Jepsen conducted the investigation in conjuction with the FTC.
NBC Connecticut
Yale-New Haven Hospital has signed an agreement to merge with the Hospital of Saint Raphael.
Connecticut's Attorney General will not block the proposed merger of Yale-New Haven Hospital and The Hospital of Saint Raphael.
Attorney General George Jepsen completed his antitrust investigation into the deal and announced his decision to allow the merger to go forward Friday.
"Based on the evidence developed during the investigation, and in light of the law applicable to these types of transactions - including taking into consideration St. Raphael's precarious financial condition and other expected efficiencies that will be realized through the acquisition - I have decided not to seek to block the merger under Connecticut's antitrust law," Jepsen said.
Part of the investigation, which was coordinated with the Federal Trade Commission, looked at possible issues the merger of the two hospitals could have on medical services for residents in Connecticut, and whether the deal would provide the new entity the ability to use its bargaining power to force insurers to pay high reimbursement rates.
Yale-New Haven Hospital has agreed to Jepsen's request to maintain current levels of charitable health care and financial assistance and provide the same level of service and assistance to patients at the St. Raphael's campus as well.
The two hospitals announced the plan to merge last fall. Under the agreement, Yale-New Haven Hospital will purchase the assets of The Hospital of St. Raphael, creating one hospital with two campuses. YNHH will invest more than $100 million in the St. Raphael's campus to improve its facilities.
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