Westerly Hospital and its owner Lawrence & Memorial Hospital in Connecticut may soon be affiliated with an even larger system: Yale New Haven Health. The groups have just cleared a few regulatory hurdles. Hundreds of millions of dollars in investments in the hospitals are at stake.
Westerly was losing money when Lawrence & Memorial Hospital bought the struggling hospital in 2013. Now L&M hopes affiliating with Yale New Haven Health will bring even more stability – and savings – to the system. The groups are still waiting for approval of the deal from the State of Connecticut, says Westerly spokesman Mike O’Farrell.
“So we’re standing by to hear good news from them soon,” said O’Farrell. “But yesterday was a significant day in Rhode Island having achieved positive rulings from the [RI] Department of Health and the Attorney General’s office.”
If the affiliation with Yale New Haven wins approval, the large health system plans to invest $300 million dollars in all of its hospitals, in patient care, marketing, and other areas.
O’Farrell says the groups hope to save some money but he says it’s too early to tell whether that could mean layoffs.
