Some of Los Angeles-based Prospect Medical Holdings’s hospitals in Connecticut have secured interest from ‘multiple buyers’ after a $435 million deal with Yale New Haven Health (Conn.) to buy all three facilities was dubbed “impossible” in February, The Middletown Press reported May 22.
The interest comes ahead of an auction deadline for Waterbury (Conn.) Hospital and Manchester (Conn.) Memorial Hospital and Vernon, Conn.-based Rockville General Hospital. While both the Waterbury and Manchester hospitals have been visited by potential buyers, it’s not known if Rockville, which has been partially shuttered since March 2020, has received visitors, the publication reported.
“The good news is we’ve got some folks who want to come in and take over as part of the bankruptcy procedure,” Connecticut Gov. Ned Lamont said on May 19 regarding the hospitals.
Prospect, which sought Chapter 11 protection in January, has been working to offload 10 of its 16 hospitals. It owes Waterbury around $22 million in back taxes.
Mr. Lamont said that while the bankruptcy process could be “complicated,” the hospitals will be in “good hands.” A sale hearing for the three facilities is expected as soon as June 5, the publication reported.
Thomas Califano, Prospect’s chief bankruptcy lawyer, said at a May 21 hearing that sales of Prospect’s California and Pennsylvania hospitals were moving forward. In late April, Prospect closed its Upland, Pa.-based Crozer Health, which comprised Upland-based Crozer-Chester Medical Center and Ridley Park, Pa.-based Taylor Hospital. The closure resulted in 2,651 employees being laid off across the hospitals and associated facilities.
Becker’s has reached out to Prospect Medical Holdings and Mr. Lamont’s office for comment and will update this story should more information become available.
