Two hospital systems serving patients in New York and Connecticut plan to team up.
Dr. John M. Murphy (left), president and CEO of Nuvance Health, and Michael Dowling, president and CEO of Northwell Health, announced Wednesday plans to integrate the two health systems. (Image: Northwell Health)
Northwell Health and Nuvance Health announced plans to merge Wednesday. If regulators approve the deal, the combined system will operate 28 hospitals and more than 1,000 treatment facilities. The combined organization will also include more than 14,500 providers.
Northwell, based in New York, is the state's largest health care provider with 21 hospitals in New York City and Long Island. Nuvance operates seven hospitals in western Connecticut and New York's Hudson Valley.
The deal represents another major merger of hospital systems, with revenues for both systems exceeding $1 billion. Northwell Health recorded revenue of $15.6 billion in 2022, and Nuvance recorded revenue of $2.6 billion.
Mr Northwell said he would invest heavily in Nuvance and promised the system would work to improve inequality and close outcomes for disadvantaged groups. They also promised to provide care to all patients, regardless of their ability to pay.
Michael Dowling, president and CEO of Northwell Health, said the two organizations have similar missions.
“This partnership opens a new and exciting chapter for Northwell and Nuvance Health, providing an exciting opportunity to strengthen both our health systems and take patient care and services to the next level,” Dowling said in a statement. Ta.
In a video message announcing the partnership, Dowling said: Nuvance is doing great things. we are doing great things. Therefore, bringing the two organizations together allows them to learn from each other, share best practices, and gain more insights. And ultimately, it is clear that we need to improve care for our communities. ”
Dr. John M. Murphy, President and CEO of Nuvance Health, emphasized the potential for hospitals to provide better care.
“By partnering with Northwell Health, we are able to take a major leap forward in our shared mission to improve the quality, accessibility and equity of care we provide to our communities,” Murphy said in a statement. ” he said. “This agreement will enable our community hospitals to significantly improve health outcomes, provide unparalleled care, and drive positive change in the healthcare landscape.”
The organizations said Nuvance will benefit from Northwell's financial and clinical resources, but both systems will gain additional purchasing power to expand health care delivery.
Northwell and Nuvans also said the planned merger will improve their ability to recruit and retain talented doctors, nurses, researchers and other health care professionals.
Mr. Dowling said that Northwell and Nuvance are working together to “strengthen access, improve clinical care, and of course how we strengthen and create our future workforce and enhance our educational programs.” The two sides will consider what they can do together.
Northwell boasts an 'A-' rating from Fitch Ratings. Last April, Fitch said the rating “reflects Northwell's leading share position in a large and highly competitive service sector.” It is supported by a large physician membership and has an extensive presence in emergency medicine and outpatient care. This rating also reflects Northwell's proven ability to successfully manage growth. ”
Nuvance's hospitals include Danbury Hospital and its New Milford campus, Norwalk Hospital and Sharon Hospital in Connecticut. Northern Dutchess Hospital, Putnam Hospital, and Vassar Brothers Medical Center in New York;
The merger is the latest in a series of hospital mergers. According to the Kaufman Hall report, 65 hospital deals were announced in 2023, up from 53 in 2022.
Analysts expect more hospitals to pursue mergers and acquisitions next year, especially as some hospitals face financial challenges and others seek alliances with stronger systems.
read more: The Big Deal: Looking ahead to major hospital mergers in 2023
