One of the world’s leading medical institutions is teaming up with a century old healthcare institution in eastern Connecticut.
Lawrence and Memorial Hospital in New London has agreed to affiliate with Yale-New Haven Hospital.
This means that both institutions have been dating for a long time, sharing technical expertise, and now they are making it more official.
The announcement of an affiliation between the two groups has been anticipated since February when both groups started talking.
Last week, the board of directors for both hospitals blessed the marriage, at a time when all hospitals are faced with significant cuts in Medicare and Medicaid.
Lawrence and Memorial’s CEO said it makes it difficult to maintain an adequate operating margin.
"We have specifically greater need here for access for capitol with which to update our facilities continue to refresh our technology,” said L&M President and CEO Bruce Cummings.
The two organizations have been working together for years on clinical programs.
This formal affiliation gives L&M more resources for physicians as well as patients in southeast Connecticut and Westerly Hospital in Rhode Island, which is owned by L&M.
New Haven officials said the marriage will provide better value for patients in the region.
"Better value is better clinical care, safer care in ways the patient can really understand and know about it at a lower cost,” said Marna Borgstrom, president and CEO of Yale-New Haven Health.
Under the hospital agreement, Yale is investing $300 million and all labor union contracts will remain.
Yale’s investment includes implementing a medical record system and creating enhanced data sharing for providers.
The deal doesn’t mean jobs will be cut.
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