Northwell Merges with Nuvance to Create Major Health System

Northwell Health and Nuvance Health have received the final regulatory approval needed from the Connecticut Office of Health Strategy to proceed with their merger. This merger will unite the two health systems to form a 28-hospital network with over 1,000 care sites across New York and Connecticut. This strategic merger comes amid Nuvance's struggling financial state, as highlighted by the attorneys general of New York and Connecticut, who reviewed and approved the deal. Nuvance's financial situation, marked by significant losses and challenges since its formation from the merger of Health Quest Systems and Western Connecticut Health Network, necessitated a prompt merger to avoid closures. Northwell, known for its successful turnaround plans, will invest $1 billion over five years, while adhering to conditions set by regulatory agencies. These conditions include maintaining collective bargaining agreements and expanding healthcare services. The merger reflects a growing trend of mergers involving financially distressed health systems as a strategy for financial stability.