The owner of three financially struggling hospitals in Connecticut, Prospect Medical Holdings, has filed for Chapter 11 bankruptcy, raising concerns among state officials about ensuring the continuity of patient care and safety.
Prospect owns Waterbury Hospital, Manchester Memorial Hospital, and Rockville General Hospital and has faced financial difficulties since acquiring these facilities in 2016 for nearly $300 million.
Complaints about unpaid bills, state taxes, and pension obligations have persisted under Prospect’s ownership, with the company taking out a $1.12 billion mortgage to pay dividends to investors.
Governor Ned Lamont emphasized that the state has been preparing for this possibility and assured the public that the hospitals will remain operational.
Lamont has put together a cross-agency team to maintain hospital operations and ensure the proper compensation of employees and vendors. He also reiterated that the state would explore opportunities to transfer the hospitals to a new operator.
In response to the bankruptcy filing, Attorney General William Tong expressed his concern but stressed that Prospect’s legal obligations regarding patient care and safety remain unchanged.
The state has placed an independent monitor at Waterbury Hospital and plans to increase oversight at Manchester Hospital. State lawmakers, including Sen. Saud Anwar, have also voiced concern about the bankruptcy, calling for a swift resolution to avoid compromising healthcare services in the affected communities.
Prospect’s bankruptcy comes after a failed deal in 2022 with Yale New Haven Health, which sought to purchase the hospitals. This has added to the uncertainty surrounding the future of these critical healthcare facilities.
As the bankruptcy proceedings unfold, state leaders continue to prioritize patient safety and the stability of the hospitals’ operations.
