On February 25, Connecticut Governor Dannel Malloy issued an Executive Order establishing a 17-member task force to review and analyze the state's certificate of need (CON) programs and process to determine whether changes are necessary in order to preserve an "open and competitive health care market."
The Executive Order also provides for a moratorium until January 15, 2017, on CON application approvals by the state Department of Public Health (DPH) and Department of Social Services pertaining to certain proposed transactions involving nonprofit hospitals. The moratorium covers the transfer of assets or control by a nonprofit hospital to a for-profit entity, or the acquisition of a nonprofit by another nonprofit, which in either case will result in an entity with revenues exceeding 20% of Connecticut's total hospital health system operating revenue. The moratorium includes CON applications currently on file as well as potential new applications.
The Executive Order includes an exception that would permit DPH to approve a CON application submitted by a nonprofit hospital that reported negative margins in each of the three previous fiscal years.
The task force will be led by Lieutenant Governor Nancy Wyman and will include representatives of healthcare providers, health insurers, state government, consumers, and other constituencies.
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