Nine months after the deal was first announced, the acquisition of Milford Hospital and its Milford Health & Medical affiliate by the Yale New Haven Health (YNHH) system was green-lighted by regulators Friday.
Officially, the 106-bed Milford Hospital will come under the wing of YNHH subsidiary Bridgeport Hospital after the state Office of Health Strategy (OHS) approved the hospital’s Certificate of Need application for a satellite license.
Yale New Haven Health also announced that it planned to invest $50 million to improve Milford Campus clinical services and the physical plant.
In an announcement, OHS Executive Director Vicki Veltri said the approval was conditional on a cost cap linking the rate of cost growth to the consumer price index at the merged Bridgeport/Milford entity.
“The rising cost of health care is a national problem, but in Connecticut we are taking action to bring costs down,” said Veltri in a statement. “This approval is conditioned upon several things, including a cost cap that will restrain the rate of cost growth by linking it to the consumer price index. For residents who use Bridgeport Hospital in Bridgeport or Milford, that will keep cost growth in check and stabilize it in the future.”
The new hospital will hire an independent monitor chosen by OHS to serve for at least three years who will conduct on-site visits and report on agreement compliance.
The transfer of ownership is expected to “expand access to clinical services and consult programs; improve performance and safety by reducing adverse events; and improve the hospital’s ability to recruit primary care and specialty physicians,” according to the news release.
In addition to Bridgeport Hospital, the YNHH system includes Greenwich Hospital, Lawrence & Memorial Hospital, Westerly (R.I.) Hospital and Northeast Medical Group.
