Yale New Haven sale key to Prospect hospitals' survival, CEO says

The sale of three Connecticut hospitals to Yale New Haven (Conn.) Health from Los Angeles-based Prospect Medical Holdings is "urgent," according to a letter obtained by the CT Mirror.

In an Oct. 2 letter to Gov. Ned Lamont, Deborah Weymouth, CEO of Manchester-based Eastern Connecticut Health Network, which oversees two of the three hospitals involved in the deal, shared her concerns about the financial difficulties and timing involved in the ongoing sale. 

With a proposed $435 million price tag, Yale New Haven signed an initial deal in November 2022 to acquire the three Prospect Medical hospitals: Waterbury (Conn.) Hospital and ECHN's Manchester Memorial Hospital and Rockville General Hospital in Vernon. 

Since then, Yale New Haven has expressed "mounting concerns" about the deal, including the high price, slow regulatory approval process and recent cyberattacks that interrupted the hospitals' IT systems. In October, Yale New Haven also asked the state for $80 million to assist in purchasing the hospitals, with an annual $16 million provided for five years.

"Governor Lamont, we implore you to consider the urgent nature of our situation," Ms. Weymouth said in the letter. "Time is of the essence, and we cannot afford to let this opportunity for a more robust, efficient, and accessible healthcare system for our communities slip through our fingers once more. Everybody will be better off with the completion of the sale to Yale."

While the sale has been reviewed and approved by both the Federal Trade Commission and the state's Office of the Attorney General, they are still waiting on approval from the state's Office of Health Strategy due to concerns over healthcare costs and market share, the publication reported. In the letter, Ms. Weymouth pleaded with Mr. Lamont to help expedite the state's certificate-of-need process.

"I kindly request your support in ensuring that the [certificate of need] process for our transaction with YNHH proceeds swiftly and without excessive conditions that could jeopardize the deal," Ms. Weymouth said in the letter. "The proposed acquisition will not only secure the future of our hospitals, but also enhance the overall health care landscape in our state. Your leadership and influence can make a significant difference in securing the health and well-being of our communities."

Yale New Haven had no comment for Becker's regarding the letter. Becker's has reached out to ECHN for comment as well.

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