UConn Health Seeks Emergency Certificate to Buy Waterbury Hospital; OHS Questions Bed Licensing, Access and Finances

The Connecticut Office of Health Strategy heard testimony on Dec. 19, 2025 on an emergency certificate-of-need application from the University of Connecticut Health Center Finance Corporation to acquire assets of Waterbury Health and related entities, citing a bankruptcy sale and the need to preserve local hospital services.

Acting Commissioner Amy Porter told witnesses the new emergency CON process created by Public Act 25-2 requires OHS to evaluate effects on access, cost and quality of care, impacts on market concentration and Medicaid access, the bankruptcy’s effects on patients and communities, and the applicants’ plans to restore financial viability. The agency said it may issue a decision on or before Feb. 9, 2026 and left the record open for written comment.

UConn Health witnesses described the transaction as a rapid intervention to keep Waterbury Hospital operating and to stabilize employment and services. Dr. Andrew Aguanobi, UConn Health executive vice president for health affairs and chief executive officer, said the acquisition would bring “integration plans to ensure a seamless transition” and emphasized commitments to quality, staffing and community engagement. “We at UConn Health are very excited about this acquisition,” he said.

The applicants identified a proposed capital expenditure of $212,000,000 tied to the project and said the full capital plan could total roughly $250,000,000 over five years as priorities are refined. The application lists total proposed costs of $225,000,000 and a purchase price of $13,000,000.

OHS pressed applicants to clarify corporate relationships among the finance corporation, a newly created Waterbury Health purchaser entity and a property‑holding vehicle (Robin Street/Robins Creek Corp.). Scott Simpson, the applicants’ counsel, said the finance corporation was created under Conn. Gen. Stat. §10a-250 and that Waterbury assets would initially sit in the Waterbury Health Corp. He described certain governance and joint‑venture options that remain under development.

One specific regulatory request drew sustained questioning: applicants asked authority to allow some Waterbury beds to be licensed under the John Dempsey Hospital license while remaining physically on the Waterbury campus, to enable rapid deployment of UConn specialists. Dr. Aguanobi said those beds would remain on the Waterbury campus and that the license flexibility would let the parties provide specialty services quickly. OHS asked whether any time limit is proposed; counsel said no fixed time limit is currently contemplated and that services would be provided as long as community needs justify them.

Applicants told OHS they plan to offer conditional employment offers to all staff as part of retention efforts and noted that private physicians’ contractual transitions remain to be worked out. Counsel and witnesses described a Transitional Services Agreement and other short‑term arrangements to keep revenue cycle, billing and EMR support operating at close of the bankruptcy purchase, but they cautioned that full EMR migrations (from Waterbury’s Cerner toward UConn’s Epic where appropriate) can take many months to years without disrupting care.

On access and Medicaid patients, OHS asked for evidence that Waterbury’s Medicaid patients could not access comparable care elsewhere. Applicants pointed to transportation barriers and said Prospect Waterbury provided inpatient care for more than 3,300 Medicaid patients on an annualized basis as stated in the application; they argued that keeping locally available specialty and inpatient services preserves continuity for patients who face travel barriers.

OHS also questioned affordability and payer negotiations. Applicants said rate negotiations would be Waterbury‑specific and that there are no immediate expectations about changing commercial reimbursement rates; they said they plan conversations with the state comptroller’s office about affordability but that formal comptroller discussions for Waterbury had not yet started.

Applicants described quality and safety practices they plan to apply at Waterbury, including governance structures such as QAPI committees and physician empowerment processes. They cited prior consistent Leapfrog ratings at UConn-affiliated hospitals as a model and said facility tours and a due‑diligence facilities assessment identified deferred maintenance items (plumbing, HVAC, elevators) that would be prioritized in the capital plan.

State Representative Ron Napoli read written public comment from Waterbury’s mayor and state Senator Joan Hartley urging approval, describing Waterbury Hospital as an essential local provider and a major employer.

OHS preserved administrative notice of related dockets (including a prior John Dempsey bed‑capacity matter) and reiterated the expedited timetable for this emergency proceeding. The hearing was adjourned, with the record remaining open for written comment and the agency pledging to render a decision by Feb. 9, 2026.

What happens next: OHS will continue its review under the emergency CON rules, may request additional information or third‑party analyses, and will accept written public comment until the agency’s final action is taken.