Northwell Secures Approval for Nuvance Merger in Connecticut
Deal News | Apr 09, 2025 | EIN
The state of Connecticut has given its approval for the merger of Northwell Health and Nuvance Health, with Northwell becoming the parent company of Nuvance's facilities in Connecticut and the Hudson Valley. Northwell, a major healthcare provider based in New York, operates 21 hospitals and employs over 85,000 people. The merger, marking Northwell's venture outside New York, involves investing $1 billion in Nuvance's operations over the next five years. The combined entity will manage 28 hospital locations, over 1,000 care sites, and 14,500 providers across the region, projected to generate $20 billion in revenue. Dr. John M. Murphy, Nuvance's CEO, cites the merger as a step toward stability and competitiveness after experiencing financial losses exacerbated by the COVID-19 pandemic.
Sectors
- Healthcare
Geography
- United States – The merger involves entities in New York and Connecticut, impacting healthcare services in these states.
- Connecticut – Connecticut's state approval was necessary for the merger of Northwell Health and Nuvance Health, making it a key region in this transaction.
- New York – Northwell Health is based in New York and the merger expands their operations into Connecticut, highlighting regional healthcare dynamics.
Industry
- Healthcare – The article discusses the merger of two healthcare entities, focusing on hospital and healthcare provider operations.
Financials
- $1 billion – The investment Northwell is required to make in Nuvance's hospitals as part of the merger conditions.
- $20 billion – The estimated revenue of the combined entity after the merger of Northwell and Nuvance.
- $164.2 million – Losses reported by Nuvance Health for the fiscal year ending September 30, 2023.
- $915.2 million – Gains posted by Northwell Health in 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Northwell Health | Bidding Company | Company | Northwell Health is New York's largest healthcare provider, operating 21 hospitals and employing more than 85,000 people. |
| Nuvance Health | Target Company | Company | Nuvance Health operates seven hospitals, serving regions in Connecticut and upstate New York, and seeks stability through the merger. |
| Connecticut Office of Health Strategy | Government | Government | This state agency approved the merger, stipulating the conditions under which Northwell must invest in Nuvance. |
| Michael Dowling | Person | People | President and CEO of Northwell Health, who commented on the strategic importance of the merger. |
| Dr. John M. Murphy | Person | People | President and CEO of Nuvance Health, advocating the merger for organizational stability. |