Avon, Conn.-based CSA, a major for-profit operator of ASCs in the state, is seeking to sell 60% of the membership interests to an undisclosed buyer for an undisclosed price. The company directly or indirectly owns stakes in nine surgical facilities across Connecticut.
CSA had initially sought an exemption from the state’s certificate of need process, arguing that the sale would not impact facility operations, personnel, patient services or the governance structure of individual ASCs. However, Connecticut law defines healthcare facilities to include parent companies and affiliates like CSA, meaning a sale of CSA itself qualifies as a transfer of ownership and thus requires CON approval.
OHS maintained that changes in a parent company’s ownership fundamentally affect control over healthcare facilities, necessitating regulatory oversight to protect public health interests.
CSA declined Becker’s request for comment.
