Connecticut Attorney General William Tong has reached an agreement with Hartford Healthcare to protect against rising costs and ensure physician freedom as Hartford Healthcare acquires Manchester Memorial and Rockville General hospitals from bankrupt Prospect Medical. The agreement resolves an antitrust review triggered by the state’s “notice of material change” statute, which requires the Attorney General to review healthcare transactions for potential anticompetitive concerns.
Cost Controls and Physician Protections
Hartford Healthcare has agreed to limit cost increases at Manchester and Rockville for two years. The hospitals, which are generally lower cost than Hartford Healthcare facilities, will benefit from price constraints designed to protect patients. The agreement also waives non-compete clauses in physician contracts, enabling physicians to move to other jobs within 90 days if they choose. Importantly, physicians who shift to other hospital systems or practices will maintain privileges at Manchester and Rockville.
According to Tong, the agreement includes “safeguards for physician mobility, commitments to maintain an open medical staff, and obligations to limit reimbursement increases for certain physician services.” The Attorney General stated these measures help “ensure that the benefits of preserving the failing business and affiliated physician practice are realized while minimizing the potential for immediate post-merger price increases, reduced patient choice, or diminished competition.”
Broader Regulatory Framework
The Office of Health Strategy separately approved the transaction on December 10, with conditions requiring Hartford Healthcare to provide an initial assessment of the hospitals’ condition and a strategic integration plan within nine months, engage the community in strategic planning within nine months, and maintain current services including labor and delivery and intensive care for three years. The agreement also mandates maintaining a 24/7 Emergency Department in the town of Vernon for at least three years and the full complement of inpatient behavioral health services at or within 30 miles of the Rockville campus.
Governor Ned Lamont agreed with the transaction, stating it “ensures continuity of care for the communities that rely on these hospitals” while “establishing meaningful patient protections, including limits on price increases.”
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://ctnewsjunkie.com/2025/12/30/hartford-healthcare-ct-attorney-general-reach-deal-to-limit-cost-increases-in-sale-of-manchester-rockville-hospitals/