Hartford, Conn.-based Hartford Healthcare’s acquisition of Manchester Memorial and Rockville General hospitals from bankrupt Prospect Medical was approved with conditions aimed at limiting cost increases and preserving physician autonomy, according to a Dec. 10 press release.
The agreement resolves an antitrust review by the Connecticut Office of the Attorney General triggered under the state’s “notice of material change” statute. Under the deal, Hartford Healthcare must maintain an open medical staff and limit reimbursement increases for certain physician services. The agreement also waives noncompete clauses in physician contracts, allowing physicians to leave within 90 days and retain privileges at the hospitals.
Cost increases at Manchester and Rockville hospitals will be capped for two years. Both hospitals are generally lower cost than Hartford Healthcare’s existing facilities.
Additional conditions — previously approved by the Connecticut Office of Health Strategy — require Hartford Healthcare to provide a strategic integration plan and community health needs assessments within nine months; maintain current service levels at both campuses for at least three years; and preserve a 24/7 emergency department in Vernon.
The Office of the Attorney General continues to participate in the Prospect Medical Holdings bankruptcy case, where it has filed a proof of claim citing negligent misrepresentation, unjust enrichment and other alleged violations.
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