Yale New Haven (Conn.) Health System extended its reach to Connecticut's far western border through a deal announced last week with 160-bed Greenwich (Conn.) Hospital.
The mergerlike affiliation with Greenwich is the latest move by the growing healthcare system to gobble up turf in the southwestern part of the state and elsewhere.
Just last month, Yale New Haven cut a deal with Saint Francis Hospital and Medical Center in Hartford, Conn., to merge the two systems' managed-care plans (May 12, p. 14). And last summer, the system took 376-bed Bridgeport (Conn.) Hospital under its wing through another mergerlike affiliation agreement.
Under the deal with Greenwich, Yale New Haven would assume control of the hospital's operations, although Greenwich would keep its separate ownership and governance structure. In addition to a seat on Greenwich's board, Yale New Haven would have the power to approve financial and strategic planning decisions made by the local board.
Greenwich, in turn, would get a seat on Yale New Haven's board.
Frank A. Corvino will retain his post as president and chief executive officer of Greenwich and will become executive vice president of Yale New Haven. He said the deal enables Greenwich to create a regional healthcare system and to reap the benefits of being part of a larger organization.
Yale New Haven, with annual revenues of $684 million, is Connecticut's largest health system. It's anchored by 778-bed Yale-New Haven Hospital.
With Greenwich, Yale New Haven's total assets would exceed $1.1 billion. But the system has grander plans.
"We're clearly interested in having a broad footprint throughout the state of Connecticut and over the border in New York and Rhode Island," said Joseph A. Zaccagnino, the system's president and CEO.
The deal requires state certificate-of-need, attorney general and federal antitrust approvals. It is not expected to be completed until next spring.