Governor orders delay, time to study CON approvals for massive hospital mergers

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Yesterday Governor Malloy issued an Executive Order halting state Certificate of Need approvals for hospital mergers that would cover more than 20% of total CT hospital spending until Jan. 15, 2017. The delay will allow for a “fair and through” review of the CON process by a new taskforce. Concerns about the current CON process have been raised most recently because of reductions in services at Windham Hospital when they merged with Hartford Healthcare and creating a tipping point of market concentration that could escalate prices. The Executive Order came a day after the Public Health Committee held a public hearing on bills to revise the CON process and restrict hospital administrator pay.