Lawmakers say healthcare, hospital support will be a priority next session

Lawmakers say healthcare and support for hospitals will be a top priority in the next legislative session.

The comments from leaders, in the recent session’s closing days, came in the wake of Yale New Haven Health suing to get out of its deal to buy Prospect Medical Holdings’ three Connecticut hospitals.

“I know there might be a hesitancy to have, as the majority leader alluded to, the state step in on what is a private transaction, but it could very much have disastrous public,” Rep. Matt Ritter (D-Speaker) said about the possibility of Yale New Haven backing out.

He and other Democratic leaders said they’d back state support, if necessary, to close the deal.

Gov. Ned Lamont has been reluctant to offer any significant state funding to help close the deal. He did tell reporters Thursday that he’d be willing to facilitate talks.

“Do i get them into this office?” he said. “If we have to, we will. Right now, I need these guys to make a deal.”  

Yale New Haven Health filed a lawsuit earlier this month to end its deal to buy Prospect’s hospitals in Waterbury, Manchester and Vernon.

The complaint accused Prospect of failing to pay rent or taxes, letting facilities deteriorate and driving away doctors and vendors.

The dispute also had lawmakers saying they plan to propose legislation focused on the financial health of hospitals.

Some of those efforts could include help, such as raising Medicaid reimbursement rates. Connecticut hospitals are only reimbursed for 62% of the cost to care for Medicaid recipients.

“You don’t have to be a math wizard to understand that you can’t keep providing care when you’re losing 38 cents of every dollar,” Connecticut Hospital Association Senior Vice President of Policy Paul Kidwell said.

But CHA is likely to push back on other efforts, such as regulations around the sale or merger of hospitals.

Hospitals must get approval through a process called Certificate of Need. CHA noted Yale New Haven had to wait over a year for approval to buy Prospect.

“It has to be a process that doesn’t take more than a year,” Kidwell said.

Approval is also needed for other changes, such as adding new units or reducing services or programs.

Lawmakers said the process is needed to ensure quality care, especially when private equity is involved. Prospect is the only for-profit hospital owner in Connecticut.

“If it’s primary purpose to try and extract money form the community, we need to protect citizens,” Sen. Saud Anwar (D-South Windsor), co-chairman of the Public Health Committee, said.

Lawmakers are worried the process could be complicated by Lamont’s relationship with the hospital industry. The two sides have been involved in strong disagreements, especially over efforts by the Office of Healthcare Strategies to control cost.

Ritter said there’s a “lack of trust” between the two sides. Republicans were especially critical of OHS Executive Director Diedre Gifford.

“That's something I’ve never seen before – continually being moved from one agency to another and there continues to be problems that follow this commissioner,” Rep. Vincent Candelora (R-Minority Leader) said.

Lamont defended his OHS chief and his relationship with the hospitals.

“Hey, I came in the office – the hospitals and the state weren’t even talking to each other,” Lamont said. “All they were doing was suing each other.”

Kidwell agreed the two sides have a good relationship, despite the disagreements.

“That is very clear from – we worked very well together in COVID,” he said.