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The Future of Healthcare East of the River Looks Better Than Ever

On May 12, 2014, Corporators of Eastern Connecticut Health Network (ECHN) voted favorably on the health system's proposed Asset Purchase Agreement (APA) between ECHN and a historic joint venture between Tenet Healthcare Corporation (Tenet) and Yale New Haven Health System (YNHHS). 

Ninety-one percent of the Corporators who submitted proxies or voted in person supported the APA, which will allow ECHN to continue to fulfill its mission, to provide high-quality and compassionate healthcare, for generations to come. In addition, the proposed transaction will strengthen ECHN in a time of challenging and continuous change to our state and national healthcare infrastructures. The proposed sale to the new joint venture will make ECHN stronger and allow us to continue our mission. It will ensure that healthcare will remain close to home for our patients and sustainable for years to come. 

The legislation enacted by the Connecticut State Legislature and signed into law by Governor Dannel Malloy effectively changed state law to allow "not-for-profit hospitals" to be sold to "for profit" or investor-owned healthcare entities. There are certain state and federal regulatory requirements that ECHN, Tenet and YNHHS must meet, which include Certificate of Need (CON) approvals by the Attorney General and the Office of Health Care Access. The CON process includes additional public hearings to allow for continued community input. In addition, we will make antitrust filings to the Attorney General, The Federal Trade Commission and the Justice Department.

The regulatory process in the coming 12-18 months will also make more specific information about our proposed transaction available to the public. ECHN will work diligently with state and federal regulators to meet all criteria required for final approval of the proposed transaction. We are encouraged by the support and thoughtful input from our Medical Staff, Corporators, Trustees and our dedicated employees. We are committed to keeping ECHN moving forward to better serve our communities and patients in a way they expect and deserve.

Healthcare is changing, but at ECHN, Caring Never Changes.


ECHN Pleased with Passage of For-Profit Hospital Bill
May 8, 2014 - 

Eastern Connecticut Health Network (ECHN) is pleased with the Connecticut General Assembly’s passage of a bill that allows the health system to move forward with its proposed transaction with Tenet Healthcare Corporation and Yale New Haven Health System. 

“We’d like to thank the Governor’s office and the Legislature for working to craft a bill that recognizes the rapidly changing environment for hospitals with health care reform and the importance for some Connecticut hospitals to convert to for-profit institutions,” said Dennis McConville, Senior Vice President and Chief Strategy Officer at ECHN. “We are most pleased with the support and commitment shown by our local legislative representatives. Today, health care providers are finding themselves increasingly challenged by very complex issues, and our legislators spent a lot of time over the past year listening to our concerns and sharing this information with their colleagues.” 

While there is still work to be done, ECHN believes this legislation lays the groundwork for a strategic partnership to be formed that will allow it to continue to provide local access to quality care for the patients it serves. “We look forward to working with our local and state leaders in the future so that we can collaboratively address the challenges facing the health care industry,” said McConville.


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