Health care giant, Hartford HealthCare, is warning of a potential bankruptcy scenario for Danbury-based Nuvance Health if the state of Connecticut does not approve a proposed merger between the two organizations. The merger, which has been in the works since last year, is intended to improve the financial stability of Nuvance, which has struggled financially in recent years.
Hartford HealthCare has raised concerns about the financial viability of Nuvance if the merger is not approved, stating that bankruptcy may be the only option if the deal falls through. The merger would provide Nuvance with access to additional resources and expertise, which could help to address the financial challenges facing the organization.
Nuvance Health, which was formed through the merger of Danbury Hospital and New Milford Hospital in 2019, has faced financial difficulties in recent years, including a $46 million operating loss in 2019. The organization has been working to address these challenges through cost-cutting measures and other initiatives, but the proposed merger with Hartford HealthCare is seen as a crucial step towards improving its financial stability.
The merger between Nuvance and Hartford HealthCare is currently under review by the Connecticut Office of Health Strategy, and a decision is expected to be made in the coming months. Hartford HealthCare has emphasized the importance of the merger for both organizations, stating that it would strengthen the health care system in the region and ensure that patients have access to high-quality care.
Overall, the proposed merger between Nuvance and Hartford HealthCare is seen as a critical step towards ensuring the financial viability of Nuvance Health and improving the overall health care system in Connecticut. Without approval of the merger, Nuvance may be facing a dire financial situation, with bankruptcy becoming a real possibility.
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