Prospect Medical owes $67M in taxes

Culver City, Calif.-based Prospect Medical Holdings is facing three tax liens filed by the state for failure to remit $67 million in taxes, The Connecticut Mirror reported Jan. 9. 

Advertisement

In December, the Department of Revenue Services submitted liens indicating that Waterbury (Conn.) Hospital has an outstanding debt of $36.39 million; Manchester, Conn.-based Prospect Manchester Hospital owes $22.9 million; and Vernon, Conn.-based Rockville General Hospital owes $8.1 million — resulting in a total of $67.39 million.

According to the publication, Prospect is obliged to remit the health provider tax or hospital user fee to the state. This tax, mandated for hospitals, nursing homes and other healthcare providers, is calculated annually based on their revenues. 

As per the three liens acquired by The Connecticut Mirror, Prospect Medical Holdings has not paid taxes since March 2022. This comes as the hospital owner is working to sell three hospitals to Yale New Haven (Conn.) Health for $435 million. The state has been reviewing the tentative deal for more than a year.

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Register to Attend Webinar

Reconsider What’s Possible: Enterprise RCM and the Pro-Fee Practice

Tuesday, July 28
11:00 AM - 12:00 PM CDT

Presenters: Garett Kreitz, Med-MetrixJohn Stefanowicz, Med-Metrix

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.