Connecticut Governor Ned Lamont has unveiled a comprehensive legislative package aimed at bolstering the oversight and financial stability of the state's hospitals, health systems, and medical practices. The proposal, set to be presented to the Connecticut General Assembly during the 2025 regular session, seeks to ensure that residents continue to receive high-quality, accessible, and affordable healthcare.

Governor Lamont emphasized the necessity of modernizing the state's oversight mechanisms in response to significant shifts in healthcare ownership, funding, management, and sales. "The state needs to have a role in overseeing large financial transactions involving healthcare practices and facilities so that we can ensure that the critical services these facilities provide continue to be readily available to our residents," he stated. He highlighted concerns over the increasing involvement of out-of-state, for-profit companies in Connecticut’s healthcare system, pointing out that existing laws contain loopholes that allow crucial transactions to bypass necessary scrutiny.

The proposed legislation includes several key measures:

• Enhanced "Notice of Material Change" Statute: Strengthening current laws to ensure that the Office of the Attorney General and the Office of Health Strategy are informed about transactions that could adversely affect the quality, access, or affordability of healthcare services. Currently, many such transactions go unchecked under existing regulations.

• Review Process Establishment: Creating a collaborative review mechanism between the Office of the Attorney General and the Office of Health Strategy to identify potential red flags in healthcare transactions.

• Conditional Transaction Oversight: Empowering the Attorney General's office to impose conditions on transactions to safeguard the healthcare system or refer cases to the Office of Health Strategy for further assessment and action.

Dr. Deidre S. Gifford, Commissioner of the Connecticut Office of Health Strategy, supported the initiative, noting, “We’ve all become aware of how major transactions in healthcare can impact the financial stability of our institutions. These changes also touch the lives of patients, providers, and healthcare workers in less obvious ways and can also impact healthcare affordability for consumers.”

Attorney General William Tong also voiced his support, warning against the detrimental effects of private equity involvement in local hospitals. “We’ve all seen what can go wrong when private equity is allowed to strip mine our local hospitals and healthcare institutions,” Tong remarked. He added that increased consolidation in healthcare delivery has led to challenges in access and affordability, underscoring the need for strengthened oversight and transparency.

Governor Lamont is slated to present his annual budget address to a joint session of the General Assembly on February 5, 2025. Alongside the budget, he will introduce the detailed legislative proposals, including the bill focused on enhancing oversight of Connecticut’s healthcare facilities.

The proposed measures aim to provide the state with the necessary tools to protect its healthcare system from destabilizing practices, ensuring that Connecticut residents continue to benefit from quality and affordable healthcare services.