A deal for the University of Connecticut Health Center to take over Bristol Hospital is on track to be finalized by December or January, the hospital’s CEO Kurt Barwis said.
Executives at Bristol Health and UConn Health signed a letter of intent on Tuesday, according to a news release. While non-binding, board chairman Lou Auletta and Barwis called it “an important step” toward the hospital becoming part of the UConn Health Community Network.
“We really want to extend our collective appreciation to the Governor and his administration and the UConn executive team for their support and leadership in working to bring Bristol Hospital and Healthcare Group into the UConn Health System,” a statement read.
The organizations still have to develop a formal agreement and obtain a “certificate of need,” which is the state’s approval process for major health care deals, like hospital mergers and acquisitions. Barwis said details regarding the structure of the deal, including the price the state will pay for the hospital, were not included in the letter of intent.
The new ownership will be a lifeline for Bristol Hospital, which has struggled financially in recent years as one of only a handful of remaining independent community hospitals left in the state.
In 2024, Bristol Hospital had an operating margin of -4.7%, compared to a statewide average of -2.3%, according to a report from the state Office of Health Strategy. The year before, the hospital had an operating margin of -10.2%.
The news from Bristol comes just over a week after Day Kimball Hospital in Putnam announced a similar pending letter of intent, with the aim of closing a deal to be acquired by UConn by October. The announcements are a sign that UConn Health’s expansion plans, which state officials have said are critical to its survival, continue to move forward.
A report released in 2024, commissioned by the governor and completed by investment banking firm Cain Brothers, found that the UConn 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.
