A deal for the University of Connecticut Health Center to take over Day Kimball Hospital in Putnam is on track to be finalized by this fall, the hospital’s CEO Kyle Kramer said during a Friday morning press conference.
Kramer said Day Kimball and UConn plan to sign a letter of intent in the coming days. The organizations will then have to file with the state Office of Health Strategy to approve the transaction, which they intend to do before the end of May, with the aim of receiving the go-ahead by late summer or early fall.
“Our goal is to start our next fiscal year, which begins Oct. 1, as an approved part of the UConn Health Community Network,” Kramer said.
But, when asked for details regarding the structure of the deal and its price tag, Kramer declined to comment.
“Have I told you about the basketball team?” he quipped.
State officials and hospital executives say the support of a larger system will be a much-needed boost for Day Kimball, a rural facility and one of only a handful of remaining independent hospitals in Connecticut that has been struggling financially for years.
“All these smaller, independent hospitals are much stronger with scale, being part of a bigger community, sharing of resources and expertise,” Gov. Ned Lamont said. “That’s what UConn Health is doing in Waterbury. That’s what they’ll be doing at Day Kimball.”
Over the past two and half years, the state has provided $27 million in funds to help “keep the lights on” at the hospital, where 75% of patients have either Medicaid or Medicare, board chairman Peter Deary said.
The planned acquisition is part of an effort by the state to grow UConn Health to ensure its survival.
A report released in 2024, commissioned by the governor and completed by investment banking firm Cain Brothers, found that the health center had too small of a footprint to compete with other academic medical centers in the current market. The health center generated cash flow losses averaging $140 million per year between 2020 and 2023, the consultants wrote.
The report proposed two solutions: either sell John Dempsey Hospital or engage in a partnership with another health system. State officials have opted for the latter.
In March, UConn Health completed its purchase of Waterbury Hospital, previously owned by the bankrupt, formerly private equity-backed operator, Prospect Medical Holdings. Earlier this month, the university’s board of directors also approved the takeover of a DCF-run adolescent psychiatric facility.
The state is also in talks to acquire Bristol Hospital, another struggling independent community hospital.
