DPH: Cost and Market Impact Review

{Office of Health Care Access}
 
Cost and Market Impact Review


In response to the rapidly evolving health care market, many hospitals and medical groups in Connecticut are considering their affiliation and integration options. The Office of Health Care Access (OHCA) conducts comprehensive reviews of Certificate of Need (CON) applications that propose transactions which have the potential to significantly impact health care costs and market performance. These CON applications involve the transfer of ownership of a hospital, as defined in section 19a-639f, when the purchaser is:
a. a hospital with net patient revenue over 1.5 billion in fiscal year 2013;
b. a hospital system with net patient revenue over 1.5 billion in fiscal year 2013; or
c. a person that is organized or operated for profit.
OHCA utilizes the expertise of independent consultants who are knowledgeable and experienced in performing economic analyses of the health care market, health care costs, and prices in conducting each Cost and Market Impact Review (CMIR). For each transaction in which a CMIR is required, OHCA publishes preliminary and final public reports detailing the relevant findings in order to facilitate transparency, clarify costs and determine market impact. Final reports may identify areas for further review or monitoring, or be referred to the Office of the Attorney General in support of its advocacy on behalf of health care consumers.

For more information, see:

Questions?

Please contact staff by email at OHCA@ct.gov or by phone at (860) 418-7001.


CMIR News
  • On November 30, 2017, OHCA received a copy of The FINAL Cost and Market Impact Review (CMIR) from Milliman, an independent consultant engaged by Yale-New Haven Health as a condition of Certificate of Need Agreed Settlements under Docket Numbers 15-32032-CON (the merger of L&M Physician Association, Inc. and Northeast Medical Group) and 15-32033-CON (the affiliation of Lawrence + Memorial Corporation with Yale New Haven Health Services Corporation).
  • On September 7, 2017, OHCA received a copy of The Preliminary Cost and Market Impact Review (CMIR) from Milliman, an independent consultant engaged by Yale-New Haven Health as a condition of Certificate of Need Agreed Settlements under Docket Numbers 15-32032-CON (the merger of L&M Physician Association, Inc. and Northeast Medical Group) and 15-32033-CON (the affiliation of Lawrence + Memorial Corporation with Yale New Haven Health Services Corporation). This is currently pending revision. Pursuant to these two Agreed Settlements, this CMIR is required in order to establish a baseline cost structure and total price per unit and to be used to establish a cap on annual increases in total price per unit of service for Lawrence + Memorial Hospital and L+M Medical Group.  Also, on September 7, 2017, OHCA received Yale New Haven Health’s response letter regarding Milliman’s CMIR submission to OHCA.
  • August 7, 2017, The Final Report for the Cost and Market Impact Review of Hartford HealthCare’s Proposed Affiliation with The Charlotte Hungerford Hospital, 16-32135CMIR, is complete. Please see the Final Report above.



 




Content Last Modified on 12/7/2017 1:56:58 PM