PUTNAM, Conn. (WTNH)–Budget cuts to Medicaid were cited for the decision to suspend Hartford Healthcare’s affiliation with Day Kimball Healthcare, the two organizations announced on Monday.
In a press release, Hartford Healthcare announced that the cuts have “affected the progress Day Kimball Healthcare and Hartford HealthCare were making toward a strategic partnership.”
Hartford Healthcare is the parent of Hartford Hospital, while Day Kimball is located in Putnam and owns several facilities in northeast Connecticut.
In July, the two organizations announced that they had agreed to work together to outline the terms of a proposed affiliation. They had not formally agreed to a partnership, and had not yet sought state approval.
“Given the magnitude of the state’s cuts, it would be imprudent for us to consider moving forward with such a partnership at this time,” said James Blazar, Hartford HealthCare’s senior vice president. “This reckless slashing of Medicaid funding makes it difficult for HHC to create a path forward with Day Kimball Healthcare right now. Both our organizations have just taken a gut punch.”
Gov. Dan Malloy announced at least $60 million in cuts during the current fiscal year.
“Partnering with HHC represented a real opportunity for us to benefit patients and strengthen our finances. We are disappointed that these budget cuts affected HHC’s ability to work towards this opportunity at this time,” said Robert Smanik, FACHE, DKH’s president and CEO.
The two organizations are holding out the possibility that an affiliation could still take place, “with restored funding or under calmer financial circumstances,” according to the release.