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Source: The Hour, Norwalk, Conn.mini storageDec. 31--NORWALK -- The Connecticut Office of Health Care Access (OHCA) has given Norwalk and Danbury hospitals the green light to merge.The OHCA this month approved a Certificate of Need Application required for the affiliation of Norwalk Health Care Services Corp. with Western Connecticut Health Network, Inc. (WCHN) to proceed.Norwalk Health Care Services Corp. is anchored by Norwalk Hospital. WCHN is anchored by Danbury and New Milford hospitals, as well as their affiliated organizations."Based on the (information presented), OHCA finds that the proposal will improve access to and the quality of health care services in the Applicants' service areas through an enhanced workforce, broadened physician platform, strengthened clinical programs, shared best practices and protocols, improved continuity of care and more efficient integrated operations through shared resources and economies of scale," reads a portion of the approval. "This will be accomplished by having two relatively financially strong health systems collaborate at both the clinical and administrative level."Under the accompanying order, the "corporate affiliation is hereby approved."Daniel J. DeBarba, Jr., Norwalk Hospital president and CEO, said the hospital is "very delighted" that the state has approved the affiliation between Norwalk Hospital and WCHN."This is a significant milestone in the history of all three network hospitals -- Norwalk, Danbury and New Milford -- because this affiliation will serve to increase the accessibility and value of the healthcare services we provide to the members of our collective communities," DeBarba said. "Of course, this achievement would not have been possible without the support of our physicians, employees, volunteers and numerous members of the community. We'll continue to share important highlights as we build our new integrated network."In making their case for the approval, the two healthcare organizations stated that they were facing "multiple challenges including declining reimbursement and inpatient volume, and the mandates of the 2010 Patient Protection and Affordable Care Act."Accompanying the order, which was signed by DeBarba and WCHN President and CEO John M. Murphy on Dec. 23, are "Findings of Fact" -- a summary of testimony provided to the OHCA by the two organizations.While the OHCA accepted the findings as part of the record, Norwalk Hospital and WCHN must follow up on how the projected benefits and cost savings have been achieved, as well as provide a final summary enumerating the benefits and savings.Further, both hospitals must submit, n儲存 later than March 31, 2014, a detailed document showing the plan to integrate operations and attain the cost savings stated in the Certificate of Need application.Neither WCHN nor Norwalk Hospital's net revenues are expected to change after the affiliation. However, Norwalk Hospital's expenses are expected to decrease $720,000 in fiscal year 2014, $3.4 million in fiscal year 2015 and $6.6 million in fiscal year 2015, according to the savings projections presented to the OHCA."These savings are largely due to decreases in salaries and benefits ($7.4m) and supply and drug costs ($1.8m)," reads a portion of the approval. "The Applicants are projecting combined expense savings of $2.1 million in 2014, $9.9 million in 2015 and $19.1 million in 2016."Norwalk Hospital and WCHN expect that their combined scale will allow them to negotiate lower prices on goods and services. While specific line-item savings have not been identified, they are expected to be in the areas of medical and surgical supplies, food services, waste management and maintenance contracts, according to the OHCA.In January, representatives of Norwalk Hospital and WCHN signed an affiliation agreement -- a lengthy legal document -- shortly before the Norwalk Hospital board of trustees held its annual meeting at Dolce Norwalk Center.The merged organization, if approved, would include Danbury, New Milford and Norwalk hospitals with a total of 784 beds and be governed by a single board of directors, according to a press statement released at the time."For our patients, the new organization will offer expanded access to a wider range of primary and specialty care than either organization offers today," DeBarba said in the statement. "In a changing health care marketplace, we will be a trusted source of quality, reliability and personalized care."The merger was also presented as an opportunity to achieve efficiencies.In late summer, Norwalk Hospital let go three obstetricians who had been employed by Norwalk Hospital Physicians and Surgeons. The obstetricians, however, would remain members of the Norwalk Hospital Medical Staff, according to the hospital.In early December, the hospital let go of Mary Franco, hospital vice president and president of the Norwalk Hospital Foundation. While declining to elaborate on her departure, the hospital said afterward in a statement that it would be "reorganizing senior management" as part of the "upcoming affiliation with Western Connecticut Health Network."Copyright: ___ (c)2014 The Hour (Norwalk, Conn.) Visit The Hour (Norwalk, Conn.) at .thehour.com Distributed by MCT Information Services迷你倉
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