Bridgeport, Milford hospitals to merge

Exterior of Bridgeport Hospital, in Bridgeport, Conn. April 13, 2017. Bridgeport Hospital is a member of Yale New Haven Health.

Exterior of Bridgeport Hospital, in Bridgeport, Conn. April 13, 2017. Bridgeport Hospital is a member of Yale New Haven Health. Photo: Ned Gerard / Hearst Connecticut Media Buy photo Photo: Ned Gerard / Hearst Connecticut Media Image 1 of / 41 Caption Close Bridgeport, Milford hospitals to merge 1 / 41 Back to Gallery

MILFORD — Milford Hospital is expected to merge with Bridgeport Hospital, officials from both hospitals said in a joint announcement Wednesday.

One of the possible partnership’s upsides includes bolstering Milford Hospital, which has had financial challenges for several years.

However, officials said that the process of joining the two hospitals under a single management umbrella is still in its early stages and will require approval from various state and federal regulatory agencies and full board approvals.

“This isn’t something that’s going to happen overnight,” said Karen Kipfer, Milford Hospital spokesperson.

The announcement came within a few days of Milford Hospital President Joseph Pelaccia tendering his resignation from the job, citing “personal reasons.”

Kipfer said that the hospital has been struggling for a while, in part because of declining patient volume and low reimbursement rates for care. In 2014, financial issues led Milford to develop a collaborative relationship with Yale New Haven Hospital and Bridgeport Hospital, both of which are part of the Yale New Haven Health System, to house their respective Inpatient Rehabilitation Units.

“It was a great opportunity that allowed us to generate some more revenue,” Kipfer said.

But as problems persisted, greater measures were deemed necessary, she said.

The idea is for Milford Hospital to be acquired by Bridgeport Hospital. Current Milford Hospital employees, including those represented by organized labor, would become employees of Bridgeport Hospital. Bridgeport Hospital has agreed to recognize all existing labor relationships.

Kipfer couldn’t say whether Pelaccia’s resignation was linked to the planned integration, and only knew that his resignation was submitted and accepted Monday, with “personal reasons” given as the cause.

The planned integration is one of several possible partnerships between hospitals in the state. In March, two such projects were announced back-to-back. Ascension Health had started the process of selling St. Vincent’s Medical Center in Bridgeport to Hartford HealthCare. And Western Connecticut Health Network — which includes Danbury, Norwalk and New Milford hospitals — announced it would join forces with Health Quest Systems, a four-hospital group in New York, to form a $2.4 billion medical system.

Such transactions have also been common nationwide, according to a recent report from Kaufman Hall, which provides management consulting and software to businesses. The report showed 115 hospital and health system transactions announced in 2017, an increase of 13 percent from 2016, and the highest number in recent history.

The possible merger between Bridgeport and Milford hospitals “says our state is no different from the national trend,” said Angela Mattie, professor and chairwoman of Quinnipiac University’s Department of Healthcare Management and Organizational Leadership. “It’s very unusual to see a standalone hospital any more. For the most part, it’s just not fiscally possible.”

Officials on both sides of the Milford/Bridgeport deal were optimistic in the statement released Wednesday.

“We deeply respect the board, leadership and employees of Milford Hospital and look forward to the opportunity to develop an extraordinary partnership,” said Bridgeport Hospital president and CEO William M. Jennings in the statement. “We have clearly demonstrated that we can ensure access to high quality acute care for patients in Milford and surrounding communities through our IRU, and by working together, we are confident that we can deliver a bright future for Milford Hospital in the years ahead, even as the current healthcare environment challenges all providers.”

Milford Hospital Board Chair Samuel Bergami Jr. said the prospective partnership “provides us with an exceptional opportunity to explore joining a growing organization like Bridgeport Hospital and to become part of one of the nation’s leading health systems. We firmly believe this is in the best interests of the patients, employees and the community that we serve.”