Connecticut Attorney General William Tong reached an agreement with Northwell Health and Nuvance Health to resolve an antitrust investigation into their proposed affiliation. The agreement preserves labor and delivery services at Sharon Hospital and strengthens healthcare access in Western Connecticut. Northwell committed to maintaining women's health services, investing in IT and cybersecurity, and complying with Connecticut's anti-steering statute for five years.
Northwell Health must preserve and expand women's health services at Sharon Hospital, commit resources to unify electronic medical records and enhance data security, negotiate reimbursement rates independently for Connecticut and New York facilities, and comply with Connecticut's statute prohibiting anti-steering and anti-tiering clauses in network agreements for five years.
In-house legal teams should review all agreements related to healthcare affiliations, mergers, or service contracts, particularly those involving hospital systems or provider networks. Focus on clauses governing service preservation (especially labor and delivery and women's health services), anti-steering compliance, market competition safeguards, and commitments to IT/cybersecurity investments. Changes may be needed to incorporate enforceable five-year conditions, monitoring mechanisms, and penalties for non-compliance, ensuring that vendor, customer, and partnership agreements do not conflict with the mandated service maintenance and anti-steering requirements under Connecticut law.
Entity
Northwell Health, Inc. and Northwell Healthcare, Inc. (collectively “Northwell”) and Nuvance Health
Also known as: Northwell Health and Nuvance Health
Industry
HealthcareOfficial Press Release
https://portal.ct.gov/ag/press-releases/2024-press-releases/attorney-general-tong-reaches-agreement-with-northwell-health-and-nuvance-health
agreement of assurances northwell nuvance.pdf?rev=af389c9ec7
https://portal.ct.gov/-/media/ag/press_releases/2024/agreement-of-assurances---northwell-nuvance.pdf?rev=af389c9ec765455c809182d50f894c49&hash=496477B29197E804048A8918E9D93CA1
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.
$13.7M
Connecticut joined a coalition of states and the federal government in settling allegations that Takeda paid healthcare providers speaker honoraria and provided meals to induce prescriptions of Trintellix, leading to allegedly false claims to government healthcare programs. Takeda agreed to pay $13,670,921 plus accrued interest, with portions allocated to federal and state programs.