Northwell Health to Acquire Danbury, Norwalk and Sharon Hospitals In Settlement Deal

DANBURY, CT — The Connecticut Office of Health Strategy (OHS) has approved a settlement allowing Northwell Health to acquire three hospitals in Western Connecticut from Nuvance Health, finalizing a proposed affiliation between the two health systems.

Under the agreement, Northwell Health will assume ownership of Danbury Hospital—including its New Milford campus—Norwalk Hospital, and Sharon Hospital. Northwell, a nonprofit healthcare provider based in New York, operates 21 hospitals and an extensive care delivery network.

The approval comes after the two organizations submitted a Certificate of Need application on May 31, 2024. Settlement negotiations began on Jan. 31, 2025, and concluded 66 days later with an agreement that includes a number of conditions designed to protect patients and healthcare providers in the region.

"I'm proud that through dedicated collaboration, a fair agreement has been reached with Northwell Health that benefits patients and providers, while strengthening and stabilizing healthcare throughout Western Connecticut," Gov. Ned Lamont said in a statement.

Dr. Deidre Gifford, OHS commissioner, said the agreement “reflects the commitment of all parties to act in the interest of healthcare consumers and providers throughout Western Connecticut.”

As part of the affiliation, Northwell will invest at least $1 billion over the next five years across the Nuvance hospitals in both Connecticut and New York. Annual progress reports will be required to track these investments. Additionally, the agreement prohibits sale-leaseback transactions involving hospital real estate for a minimum of five years.

Key provisions of the agreement include:

• Commercial price growth caps tied to the state’s Cost Growth Benchmark and regional medical inflation
• Implementation of Northwell’s financial assistance policies at the acquired hospitals
• Maintenance of all inpatient clinical services and current collective bargaining agreements
• Strategic planning for physician recruitment and expanded clinical services
• Promotion of advanced payment models to improve population health and access to care

The settlement aligns with agreements previously reached with the attorneys general of Connecticut and New York. It also requires the continuation of labor and delivery services at Sharon Hospital for at least five years. Four hospitals in New York currently operated by Nuvance will also join the Northwell system.