Waterbury (Conn.) Hospital has approved a merger with St. Mary's Hospital in Waterbury and LHP Hospital Group in Plano, Texas, in an "overwhelmingly" majority vote by its board.
The hospital board also approved submitting a certificate of need to state regulatory agencies to allow Waterbury Hospital to convert from a non-profit to for-profit entity. St. Mary's Hospital has already submitted a certificate for the same reason.
Under the agreement's terms, LHP would own an 80 percent interest in the joint venture with the Greater Waterbury Health Network, parent of Waterbury Hospital, and St. Mary's owning 10 percent interest. Governance of the joint venture would be shared among all three entities.
Additionally, the parities will invest $400 million to construct a state-of-the-art medical center that will replace both the Waterbury Hospital and St. Mary's Hospital. According to the report, Waterbury officials expect to receive all approvals in the fall, and construction of the medical center should take four to five years.
Both Waterbury Hospital and St. Mary's have struggled financially. The organizations announced the intent to merge in August.
Waterbury Hospital in Connecticut to Lay Off 75
The hospital board also approved submitting a certificate of need to state regulatory agencies to allow Waterbury Hospital to convert from a non-profit to for-profit entity. St. Mary's Hospital has already submitted a certificate for the same reason.
Under the agreement's terms, LHP would own an 80 percent interest in the joint venture with the Greater Waterbury Health Network, parent of Waterbury Hospital, and St. Mary's owning 10 percent interest. Governance of the joint venture would be shared among all three entities.
Additionally, the parities will invest $400 million to construct a state-of-the-art medical center that will replace both the Waterbury Hospital and St. Mary's Hospital. According to the report, Waterbury officials expect to receive all approvals in the fall, and construction of the medical center should take four to five years.
Both Waterbury Hospital and St. Mary's have struggled financially. The organizations announced the intent to merge in August.
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