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Yale New Haven Health, L+M Healthcare affiliation receives full approval

Thursday, September 8, 2016

New Haven/New London, CT (September 8, 2016) – The affiliation of L+M Healthcare and Yale New Haven Health was fully approved today by the State of Connecticut’s Office of Healthcare Access (OHCA).

The parties received regulatory approval from all State of Rhode Island agencies last week and the Federal Trade Commission last year.

“We are grateful for these approvals of this historic affiliation,” said Marna P. Borgstrom, president and CEO of Yale New Haven Health. “Our goal has always been to enhance access to high quality care in the most efficient manner possible for the people of southeastern Connecticut and western Rhode Island. We are confident that we can accomplish that with this affiliation of two exceptional heath systems.”

“This is a defining moment in the history of healthcare in our community,” said Bruce D. Cummings, president and CEO of L+M Healthcare, the parent organization of Lawrence + Memorial Hospital, Westerly (RI) Hospital, L+M Medical Group and the Visiting Nurse Association of Southeastern Connecticut (VNASC). “Our industry is changing daily. Forming this affiliation – one which is built upon a history of successful clinical partnerships – is the step necessary to ensure our community continues to receive the highest quality of care it needs and deserves.”

Per the affiliation agreement, L+M Healthcare is set to become a full corporate member of Yale New Haven Health and maintain its local board of directors with fiduciary responsibility. Each hospital, and the VNASC, will maintain its identity, and the hospitals will maintain separate licenses and medical staffs.

Under the approval by OHCA, YNHHS and L+M have agreed to conduct a market assessment that will establish baseline pricing levels in the region and have agreed to the appointment of an independent monitor to assess the impact on the market for a period of five years. Additionally, under the conditions, Yale New Haven has agreed to maintain services in specialties such as cardiology, obstetrics, behavioral health and critical care for at least five years.

“Through the CON process, we were able to demonstrate to OHCA that the affiliation with L+M would help promote accessible and affordable healthcare while maintaining L+M Healthcare as an engine for economic growth in the region,” said Bill Aseltyne, general counsel and chief of staff of YNHHS. “The conditions imposed by OHCA address a number issues raised during the regulatory process, including cost and accessibility, the maintenance of local control and commitments to the workforce. We are confident in our ability to meet the goals established through the OHCA approval."

With the transaction closed, Lawrence + Memorial and Westerly Hospitals will become the first hospitals to join Yale New Haven Health as a corporate member since Greenwich Hospital affiliated in 1998. Employees of each of these hospitals will remain employed by L+M Healthcare. Over time, L+M Medical Group will merge with Northeast Medical Group. YNHHS has agreed to recognize and honor all existing labor contracts within the L+M Healthcare system.

“We are truly excited about this affiliation, especially as we have gotten to know and appreciate the quality of the medical staff, employees and Board members associated with L+M Healthcare,” said Borgstrom. “We welcome them to YNHHS and look forward to a long and successful future serving the critical healthcare needs of patients in this region.”

Yale New Haven has also pledged to work collaboratively with the Governor’s Office and appropriate state agencies to develop long-term strategies to support the State’s Medicaid program.

Yale New Haven Health System, the largest and most comprehensive healthcare system in Connecticut, is recognized for advanced clinical care, quality, service, cost effectiveness and commitment to improving the health status of the communities it serves. YNHHS includes three hospitals – Bridgeport, Greenwich and Yale New Haven hospitals, several specialty networks and Northeast Medical Group, a non-profit medical foundation with several hundred community-based and hospital-employed physicians.

The L+M Healthcare System has served patients and families along the southern New England shoreline for more than 100 years. The four entities that make up L+M Healthcare include Lawrence + Memorial Hospital, Westerly (RI) Hospital, L+M Medical Group and the Visiting Nurse Association of Southeastern Connecticut. The system entities serve more than a dozen coastal communities in Connecticut and Rhode Island, as well as the New York community of Fishers’ Island.

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