Attorney General George Jepsen said Monday that he has asked St. Mary’s Hospital and LHP Hospital Group, Inc. to submit a detailed application of their proposed joint venture because the deal requires state approval before it can proceed.
Jepsen made the request in a letter to the hospital’s attorney on behalf of his office and the state Department of Public Health and Office of Health Care Access, which are responsible for reviewing the application under state law.
St. Mary’s Hospital in Waterbury announced in March that it was accepting a $200 million capital infusion from a Texas-based private hospital operator that will take a majority stake in the not-for-profit Catholic health care provider.
The deal will shift St. Mary’s not-for-profit business model to a for profit entity.
St. Mary’s has 60 days to submit the application. Hearings are expected to begin in the fall. The deadline for a decision is four months after the application is made and determined to be complete, unless the parties agree to an extension.
The state is seeking detailed and comprehensive information about the proposed sale.
Jepsen has asked the hospital to submit a summary of the deal and any terms and conditions imposed; a detailed financial analysis of the transaction, including assessments of the fair market value of the hospital’s assets and whether the deal will put them at risk. St. Mary’s must also explain why it decided to accept this offer and detail other alternatives or offers that were rejected.
State officials are particularly interested in how the change in ownership will affect its patient populations; whether it will change medical services offered at the hospital’s main campus in Waterbury and any satellite locations and how it will ensure that the community it serves has continued access to affordable health care.
