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"We had a very, very preliminary set of initial exploratory conversations," Frank Kelly, Danbury Hospital's president and chief executive officer, said at a press conference Tuesday at Union Savings Bank in Danbury, noting that the economic climate and growing emphasis on health-care reform has sparked similar initiatives not only in the state but across the country.
"This is not unique," he stressed.
Dr. Joseph Frolkis, M.D., Ph.D., New Milford Hospital's exiting president and chief executive officer, said, "This is a wave in response to all the forces that are happening."
He added that as a result of the "informal conversations" the two sides have acknowledged "a level of trust."
"We share common goals. ... We reached a point that we agree ... we share this trust and common vision," Dr. Frolkis said.
"The criticality of the initial stage is, did we share a vision?" Mr. Kelly said. "Yes we do."
James Preston, the president of the New Milford Hospital board, said "the time is right to embark" on the dialogue "to provide better health-care service at the best possible price."
John Martocci, the chairman of the Danbury Hospital's board, said, "High-quality health care is the basis for our discussions. ... We're excited about going forward to explore possibilities."
Mr. Kelly said, "We are all doing some reflection on how best to serve [our] communities," he said.
In terms of the timing and form of the announcement, Mr. Kelly said they are "in the process of developing answers" and "felt it is important to conduct it in as open a fashion as possible."
The two hospitals' leadership declined to comment on whether a full merger or collaboration is being considered.
Dr. Frolkis said that they are considering "a full range of possibilities."
New Milford Hospital is affiliated with New York-Presbyterian Health Care System, an affiliate of Columbia University's College of Physicians and Surgeons, which, Dr. Frolkis noted, "provided some of the early conversation" about the possibility of the two hospitals undertaking a serious dialogue.
"They know health-care institutions are facing unique challenges across the country," he said.
Mr. Kelly noted that Danbury Hospital is also affiliated with Columbia-Presbyterian to some extent. "Both use Columbia-Presbyterian for New York-based services," he said.
There is, of course, duplication of some service areas regarding the two hospitals; for example, the cancer centers.
"We haven't got down to definite services lines," Mr. Kelly said, but he pointed out that there are "already referral relations" between New Milford and Danbury.
A possible affiliation of the two not-for-profit institutions could mean that "we can elaborate them to the betterment of our patients," he said, acknowledging that "people like to stay close to home" when seeking health care.
Mr. Kelly stated that the "hospitals' members have an absolute commitment to the stakeholders-the communities they serve."
"You cannot separate the business model from the public interest," he said, stressing the need of evaluating "the pros and cons of both."
The intent of their exploration, said Mr. Kelly, is to come up with a plan that is well thought out."
Dr. Frolkis acknowledged that otherwise "you run the risk of setting up a false duality."
Both hospitals are in their budget preparation season, with a new fiscal year to begin Oct. 1, and Mr. Preston acknowledged that "we're both looking at next year as if we are separate."
However, he said, New Milford Hospital would not go forward at this time with its search for a permanent administrator to succeed Dr. Frolkis, who tendered his resignation several months ago, effective this fall, to take an appointment in the Greater Boston area, where his wife is working. The hospital announced last week that it hired an interim chief executive, Richard Henley, effective Sept. 14.
Mr. Preston, who has 10 years' tenure on the New Milford board, and Mr. Martocci, who has five on the Danbury board, both said that the topic of affiliation has not come up before, but Mr. Kelly noted that "years ago ... under prior administration there was some discussion" of whether "some relationship" could be pursued.
He made a general reference to the "variety" of services the hospitals provide, the "skills" of their staff, and also pointed out commonalities.
"The clinical relationships are already a formalized," Mr. Kelly said. "These can be enhanced ... can be coordinated."
"Both Danbury and New Milford are engaged in the Planetree program as a way of enhancing the environment for preventative health care," he said.
Dr. Frolkis, in response to a question, spoke to New Milford Hospital's strengths.
"We give a truly unique, high-quality and truly personal care," he said, noting that it is reflected in the hospital's high patient satisfaction ratings.
"It should always be a great little community hospital," Dr. Frolkis said, adding, "We have become humbled by how a great little hospital is regarded by the community it serves."
It's important to remember, he said, "to be good at what we are" and "not aspire to be tertiary or quaternary" in service delivery without the means to be so.
Earlier, Mr. Preston gave an example of New Milford Hospital's rethinking the need for service it had established.
"We opened a cath lab based on [patient] projections that cost us to lose money for two years. The projections were grossly overstated so we shut it down ... ," he said, referring to New Milford Hospital's Interventional Cardiology Program, which closed in late spring because it did not meet the minimum number of patients required by the state Office of Health Care Access to continue. As for the patients that might otherwise use the service, he noted that "the hospital with the best cardiological service is 25 minutes away," referring to Danbury, rather than their having to go farther for acute emergency cardiac care.
Mr. Kelly acknowledged that there is a concerted emphasis on preventative efforts where health is concerned, but noted, "In today's health-care system, prevention is not paid for, but I think it will come. I think it's going to happen."
He noted several trends that impact health-care delivery.
"As the population continues to age, use of hospital services increases," Mr. Kelly said, citing "the synchronicity of diseases." He added that "this growing up-and-coming generation will probably not be as healthy as the generation preceding it," alluding to environmental and lifestyle factors.
"A business principle as true as not for health care is that there has to be a healthy growth of service in order to see its potential to survive. That stability," he said, "will attract the providers. Success begets success."
Mr. Preston said that discussions would be continuing at both hospitals and that an update would be forthcoming in about three or four months.
"We both believe in transparency, whether clinical information or financial," said Mr. Kelly, who added that the update would probably come after the first of the new year.
When asked whether he could see the discussion about affiliation going further, Mr. Kelly said, "We just want to study it thoroughly and do the right thing."
The announcement of the two hospitals' plans for continuing dialogue was made at a press conference Tuesday after personnel at both hospitals had been informed.
Mr. Preston said, "We have been very open with members of our senior executive committee, and they have been very supportive. They see the need for it if it can be pulled off properly." What needs to be analyzed is "what are the pros and cons" of a possible affiliation, he said.
"The buy-in of our medical staffs is critical for the success" of a possible affiliation," Mr. Kelly said.
"Both organizations have strengths that complement each other," he stressed.
New Milford Mayor Patricia Murphy said Wednesday that the news of the hospitals' dialogue did not come as a surprise. "For some weeks I've been hearing different things-but just rumors," she said.
The mayor said she would regard a possible closer working relationship as beneficial "as long as it helps keep a hospital in New Milford."
"It is our biggest employer, after the school district, and it is very important for the economy side and the health side of our community that it continue to be here," Ms. Murphy said. "I'm available to help in any way that I can."
