Officials of Yale-New Haven (Conn.) Hospital and the Hospital of Saint Raphael in New Haven have signed the final closing documents for YNHH to acquire the assets of the HSR, effective Sept. 12.
The signing that took place today culminates more than a year of planning and regulatory approvals. In March 2011, the two hospitals signed a letter of intent to explore integration, followed by a definitive agreement in September, in which YNHH agreed to purchase HSR's assets, to invest in HSR buildings and technology and to honor HSR's Catholic heritage at that campus. The acquisition was approved by the Connecticut Attorney General in June.
With the Saint Raphael acquisition, YNHH will become a single 1,519-bed hospital with two main campuses, which will help it to address its increasing and significant capacity constraints. According to the release, the acquisition allows YNHH to avoid an estimated $650 million investment in a new patient tower.
"For the Hospital of Saint Raphael, the integration represents an opportunity to assure financial stability in an uncertain time. Proceeds from the $160 million transaction will allow the hospital to pay off its debt and will help address its pension liabilities," said Christopher O'Connor, HSR president and CEO, in the release.
The Sister Anne Virginie Grimes Health Center in New Haven, Saint Raphael's 125-bed skilled nursing and short-term rehabilitation facility, is also being acquired as part of the transaction.
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