Prospect Medical’s bankruptcy could complicate the sale of its Connecticut hospitals to Yale New Haven Health amid ongoing financial issues
They’re looking to reorganize and focus on their operations outside California. But here’s the kicker: this bankruptcy could throw a wrench in their plans to sell these hospitals to Yale New Haven Health, a deal that’s been in the works since 2022.
The hospitals have been struggling financially, especially after a nasty cyberattack last August. The heads of these hospitals even warned the governor about their dire situation last month.
Yale New Haven Health is keeping a close eye on this. They’ve raised concerns about Prospect’s management and financial issues, which have been a problem for a while now. Connecticut officials are also on alert, making sure that hospital operations continue smoothly during this process.
Governor Ned Lamont mentioned that they have a team in place to oversee everything and ensure employees and vendors get paid. He’s also looking into possibly transferring the hospitals to a new operator.
The bankruptcy could hit the state hard too, as Prospect owes over $67 million in health provider taxes. They haven’t paid these taxes since March 2022, which is a big red flag.
As for the sale to Yale, it’s currently tangled in legal disputes over the hospitals’ value. Some lawmakers are hopeful that the deal can still go through, but it’s all up in the air right now.
For now, local officials want everyone to know that the hospitals are still open and operational, especially the emergency rooms. So, if you need care, don’t hesitate to go there.
This situation is definitely one to watch as it unfolds.
