Emergency legislation would create acquisition loophole for UConn Health
February 26, 2026
A controversial measure included in one of the “emergency-certified” bills before the House Thursday would give the University of Connecticut Health Center a one-time pass to sidestep the approval process for major hospital transactions, like unit closures and acquisitions.
The provision, tucked into the sprawling, 98-section e-cert bill, would allow a hospital owned by the state to add inpatient behavioral health beds without going through the state approval process, as long as the expansion occurs on or before June 30.
The bill passed the Senate on Wednesday, and was expected to pass the House Thursday, following debate that extended into the evening hours.
Democratic officials said the provision was meant to ensure that UConn Health qualifies for the federal 340B drug pricing program, which requires drug manufacturers to sell steeply discounted outpatient drugs to hospitals that treat a certain proportion of low-income patients.
UConn Health told legislators that the state stands to lose $60 million in federal funds if the measure doesn’t go through, according to ranking member of the Public Health Committee, Rep. Nicole Klarides-Ditria, R-Seymour.