Whispers have surfaced that Eastern Connecticut Health Network, a two-hospital system based in Manchester, may sell its assets to one of two for-profit hospital operators, according to a Hartford Business Journal report.
ECHN President and CEO Peter Karl did not tell HBJ which hospital chains are in the running to take over ECHN. Any deal would convert the nonprofit ECHN to a for-profit, tax-paying organization.
Although ECHN made $3.7 million in profit last year with a 1.2 percent margin, future reimbursement changes and technology upgrades may pit the system with losses in the immediate future. Mr. Karl told the HBJ, "We need to create enough scale to lower our costs by 15 to 20 percent."
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