Gov. Malloy, Bristol Hospital CEO to Discuss Connecticut Mergers

Connecticut Gov. Dannel Malloy will meet with Bristol (Conn.) Hospital CEO Kurt Barwis Friday to discuss mergers between for-profit entities and nonprofit state hospitals, according to a report from The Hartford Business Journal.

Last month, Gov. Malloy vetoed a bill that would have allowed Connecticut hospitals and for-profit entities to form certain joint ventures — like the one proposed between for-profit Vanguard Health Systems in Nashville, Tenn., and Greater Waterbury (Conn.) Health Network. Vanguard has also considered acquiring Bristol Hospital and recently announced plans to acquire Manchester, Conn.-based Eastern Connecticut Health Network, according to the report.

Gov. Malloy's veto has put the mergers on hold. In his veto message, he said there must be further consideration concerning whether state law adequately protects independent medical decision making by hospitals and health systems owned by for-profit entities. The state has historically resisted hospital and health system ownership by for-profit operators, according to the report.

The bill would have allowed for-profit entities such as Vanguard to create nonprofit medical foundations to employ physicians. Without that legal ability, for-profit operators are put at a competitive disadvantage and basically can't run hospitals in the state, Mr. Barwis told The Hartford Business Journal.

ECHN CEO Peter Karl also plans to meet with Gov. Malloy to discuss the issue of for-profit mergers, according to the report.

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