The state regulatory agency considering Hartford HealthCare’s emergency certificate of need application to acquire two hospitals owned by bankrupt Prospect Medical Holdings has hired an out-of-state consultant to review the deal.
The state Office of Health Strategy (OHS) sent a letter dated Nov. 3 to Daniel Arnold of Arnold Analytics LLC in Del Mar, California, to confirm that he was hired to “provide cost and market impact review services and to serve as a third-party consultant” for the E-CON process.
According to the letter, which was posted to the state’s online CON portal, a state law that was approved and went into effect this year allows OHS to hire third-party consultants to “analyze the anticipated effects of the transfer of ownership on health care costs, quality and access in the affected market, including an analysis of market concentration and health care access for Medicaid patients” and any other issues that may arise.
The law also stipulates that the consultant’s expenses will be paid by the applicant, in this case Hartford HealthCare, and “shall not exceed $200,000.”
Last month, Hartford HealthCare, the state’s second-largest health system, presented its case to OHS to purchase Manchester Memorial and Rockville General hospitals. Under the new expedited approval timeline for hospitals in bankruptcy, state officials must issue a decision by Dec. 30.
