Northwell Health, Nuvance Health poised to complete merger, create 28-hospital system

After more than a year of work and planning, Northwell Health and Nuvance Health are now on the cusp of completing their merger.

Northwell Health has secured its final approval needed to acquire Nuvance Health. John M. Murphy, MD, president and CEO of Nuvance Health, left, and Michael Dowling, president and CEO of Northwell Health, announced plans to merge the systems in February 2024.

Northwell and Nuvance secured the final remaining regulatory approval when the Connecticut Office of Health Strategy reached an agreement with the two systems earlier this week.

Under the deal, Northwell, New York’s largest health system with 21 hospitals, will acquire Nuvance, which operates seven hospitals in western Connecticut and New York’s Hudson Valley.

Officials expect to close the deal within 30 days. With the acquisition of Nuvance, Northwell will have a portfolio of 28 hospitals and more than 1,000 other healthcare locations. Combined, the two systems have more than $19 billion in revenue.

As part of the agreement with the state of Connecticut, Northwell has pledged to invest at least $1 billion in Nuvance’s hospitals over the next five years. Northwell also has agreed to maintain all inpatient clinical services and to recognize collective bargaining agreements. In addition, Northwell commits to expanding primary care and addressing social determinants of health.

Under the deal, Northwell also committed to retain “substantially all Nuvance Health employees in substantially similar or at least equivalent positions.” Northwell also must submit annual reports explaining its progress on its investments.

Michael Dowling, president and CEO of Northwell Health, said he looks forward to improving the health of residents in Connecticut and New York.

“This partnership opens a new and exciting chapter for Northwell and Nuvance Health and provides an incredible opportunity to enhance both health systems and take patient care and services to an even higher level,” Dowling said in a statement. “Northwell is committed to ensuring that Nuvance Health continues to deliver high-quality care in local communities for the long-term.”

Dr. John M. Murphy, president and CEO of Nuvance Health, said merging with Northwell “opens the door to an even brighter future.”

“By joining forces with Northwell Health, we can strengthen and enhance our ability to meet the needs of patients across Connecticut and the Hudson Valley for generations to come. This is a transformative moment for our patients, our employees and the communities we proudly serve,” Murphy said in a statement.

The health systems have been working to secure the approval of state officials in Connecticut, and officials said they wanted to be sure there would be no loss of healthcare services in the state.

Connecticut Gov. Ned Lamont said the settlement with Northwell represents a fair agreement “that benefits patients and providers, while strengthening and stabilizing healthcare throughout Western Connecticut.”

The systems secured the approval of Connecticut Attorney General William Tong last August. The attorney general noted in that agreement that Nuvance is struggling financially and the merger could prevent patients from facing the prospect of losing services or even the possible closure of facilities. Northwell agreed to preserve women’s health services, including labor and delivery services, at Sharon Hospital in western Connecticut.

Northwell and Nuvance first announced their intention to come together in February 2024. Nuvance had experienced several years of financial losses and determined in 2023 that the system needed to join with a larger partner, the Connecticut attorney general’s office noted.

Nuvance reported a $164 million operating loss in the fiscal year that ended Sept. 30, 2023. Nuvance fared better in the 2024 fiscal year but still posted a $99 million deficit, according to the CT Mirror.

Deidre Gifford, MD, MPH, commissioner of Connecticut’s Office of Health Strategy said the agreement will protect consumers and providers.

“Northwell Health will strengthen the capacity of these hospitals to provide accessible, affordable, high-quality care in the diverse urban, suburban and rural communities they serve,” Gifford said in a statement.

Northwell enjoys modest but consistent profitability and has expanded its footprint in the New York metropolitan area, covering Long Island, parts of New York City and Westchester County, Fitch Ratings notes.

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