Northwell Health to Acquire Nuvance Health, Forming 28-Hospital System

Deal News | Apr 11, 2025 | EIN

Northwell Health to Acquire Nuvance Health, Forming 28-Hospital System

Northwell Health and Nuvance Health are on the verge of completing a merger that marks a significant transformation in the healthcare systems of New York and Connecticut. With the regulatory approval from the Connecticut Office of Health Strategy, the merger will see Northwell Health acquire Nuvance Health. Northwell, New York's largest health system, will expand to 28 hospitals across New York and Connecticut, with over 1,000 healthcare locations and a combined revenue exceeding $19 billion. As part of the agreement with the Connecticut state, Northwell commits to a $1 billion investment in Nuvance's hospitals over the next five years while maintaining inpatient clinical services and honoring collective bargaining agreements. The deal includes expansions in primary care and attention to social determinants of health, while guaranteeing job retention for Nuvance employees. The Connecticut Attorney General supported the merger to prevent the loss of services amidst Nuvance's financial struggles. Northwell's CEO, Michael Dowling, emphasized the merger's potential to elevate patient care, while Nuvance's CEO, Dr. John M. Murphy, highlighted a brighter future for their community and employees. This partnership emerges amid Nuvance's fiscal challenges, with reported operational deficits in recent years.

Sectors

  • Healthcare
  • Mergers and Acquisitions

Geography

  • United States – The merger involves health systems located in the states of New York and Connecticut.
  • Connecticut – The location of Nuvance Health’s operations and where regulatory approval was a significant factor in the merger.
  • New York – The base for Northwell Health, which is acquiring Nuvance Health.

Industry

  • Healthcare – The merger involves healthcare systems, focusing on expanding services and improving patient care across hospitals in New York and Connecticut.
  • Mergers and Acquisitions – The article discusses a merger deal between Northwell Health and Nuvance Health, detailing the transaction and strategic implications.

Financials

  • $19 billion – Combined revenue of Northwell Health and Nuvance Health.
  • $1 billion – Investment Northwell has pledged in Nuvance’s hospitals over five years.
  • $164 million – Operating loss reported by Nuvance Health for the fiscal year ending September 30, 2023.
  • $99 million – Deficit posted by Nuvance Health in the fiscal year 2024.

Participants

NameRoleTypeDescription
Northwell HealthAcquirerCompanyNew York's largest health system, acquiring Nuvance Health.
Nuvance HealthTargetCompanyA health system with operations in western Connecticut and New York's Hudson Valley, being acquired by Northwell Health.
Connecticut Office of Health StrategyRegulatory ApproverGovernmentProvided the final regulatory approval for the merger.
Michael DowlingCEO of Northwell HealthPersonExecutive who emphasized the merger's potential for enhanced patient care.
Dr. John M. MurphyCEO of Nuvance HealthPersonExecutive who highlighted the merger as a transformative opportunity.
Connecticut Attorney General William TongRegulatory ApproverGovernmentSupported the merger to maintain healthcare services in the state.
Governor Ned LamontPolitical OfficialPersonSupported the agreement for its benefits to patients and providers.
Deidre Gifford, MD, MPHCommissionerPersonConnecticut's Office of Health Strategy commissioner who discussed consumer and provider protection in the merger.