🔒St. Francis Hospital raises concerns over Hartford HealthCare’s acquisition of Prospect Medical hospitals

St. Francis Hospital and Medical Center sent a letter this week urging state regulators to impose strict conditions on Hartford HealthCare’s proposed acquisition of Manchester Memorial Hospital, arguing the deal could worsen healthcare consolidation, reduce competition and limit patient choice in the region. The two-page letter to Office of Health Strategy acting Commissioner Amy Porter is signed by St. Francis President Valerie Powell-Stafford. It was submitted as OHS continues to accept public comment on the deal. Hartford HealthCare is the state’s second-largest health system. St. Francis is owned and operated by Trinity Health Of New England, which also owns St. Mary’s Hospital in Waterbury. Hartford HealthCare submitted an emergency certificate of need (E-CON) application in November to acquire Manchester Memorial and Rockville General hospitals from bankrupt Prospect Medical Holdings. The state opened a public hearing on the application on Nov. 18. In the letter, Powell-Stafford said the proposed deal would expand Hartford HealthCare’s network to nine hospitals statewide and significantly increase market concentration in Hartford County. She pointed to OHS’s own March 2024 report on hospital consolidation, which found that “faster price growth for inpatient and outpatient care was observed among hospitals impacted by consolidation,” especially in prices paid by private insurers. She wrote that consolidation “of this magnitude” risks diminished competition, higher healthcare costs and reduced choice for patients. To address those concerns, St. Francis urged OHS to attach two key conditions to any approval. First, it seeks a mandatory release of physician noncompete agreements for doctors practicing in the Manchester and Rockville regions. Powell-Stafford argues the agreements suppress competition, restrict access to trusted physicians and limit provider mobility during a major ownership transition. She noted that OHS has previously required removing noncompete restrictions in other CON decisions to address anticompetitive impacts. Releasing the agreements in this case, she wrote, would “promote an open market, enhance continuity of care, and ensure broader access to medical services.” Second, St. Francis wants OHS to require Hartford HealthCare to implement and maintain an open medical staff policy at Manchester Memorial and Rockville General hospitals. Such a policy would guarantee admitting privileges for independent physicians, regardless of employment or organizational affiliation. That condition is essential to preserving patient choice and preventing consolidation from narrowing referral pathways, Powell-Stafford said. Maintaining an open medical staff, she wrote, would sustain “diverse clinical expertise” and prevent the system from limiting access for non-employed doctors. The proposed conditions, she said, are “practical, enforceable, and consistent with best practices for addressing antitrust risks in healthcare consolidation.” In its application, Hartford HealthCare has said the acquisition is necessary to stabilize the financially distressed Eastern Connecticut Health Network hospitals. The letter is not the first time St. Francis has raised concerns about anticompetitive behavior by Hartford HealthCare. Two years ago, St. Francis filed a federal antitrust lawsuit against Hartford HealthCare, claiming it engaged in anticompetitive behavior by acquiring physician practices, steering referrals internally and securing exclusive rights to certain robotic equipment — actions the lawsuit claimed were part of an effort to “crush” or “bury” its competitor. That lawsuit was settled in January. Terms of the settlement were not disclosed. OHS has 60 days to issue a decision on Hartford HealthCare’s application. That period ends later this month.