Putnam, Conn.-based Day Kimball Healthcare and Hartford (Conn.) HealthCare are exploring a strategic partnership that could lead to a formal affiliation.
Here are six things to know about the exploration process.
1. The DKH board of directors has authorized a non-binding letter of intent with HHC, which allows both organizations to work together to outline the terms of the proposed affiliation. The process is expected to take several months.
2. Initially, the two systems will enter into a number of management services agreements that will allow HHC to provide management support for select operations determined by DKH. These agreements "will offer economies of scale to help DKH reduce its cost structure," the organizations said.
3. In addition, the two organizations will take part in initiatives "to enhance quality, safety and value-based arrangements that will benefit patients served by both healthcare systems." These agreements and partnerships will occur as HHC and DKH work to consider a formal integration.
4. During this time, DKH and its physicians will have the opportunity to participate in HHC’s Integrated Care Partners organization, a physician-led community of providers dedicated to improving the coordination of care and patient outcomes. ICP member providers use evidence-based medicine protocols; forge partnerships with health plans, employers and providers; and provide services to improve the health of the populations they serve.
5. The affiliation would provide DKH clinicians and patients with access to HHC's key healthcare service lines, such as cancer care, orthopedics, behavioral health, cardiology, stroke treatment, outpatient services and neuroscience.
5. DKH President and CEO Robert Smanik spoke positively about the potential formal affiliation. "At Day Kimball Healthcare, our mission has always been, and continues to be, to keep the people of Northeast Connecticut healthy," he said in a prepared statement. "To fulfill that mission, we have been proactive and innovative in meeting the challenges of a rapidly changing healthcare environment, integrating services across our network to provide efficient and coordinated patient-centered care. We see a potential affiliation with Hartford HealthCare as important to continuing that mission."
6. The signing of a letter of intent is the first step before an affiliation can be created. Both organizations will perform due diligence to determine if an affiliation would be in the best interest of those served by both organizations. If there is agreement to move forward, a definitive agreement would be created. This would require the approval of the two organizations’ respective governing boards and regulatory approval by appropriate government agencies.
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