Prior to Eastern Connecticut Health Network sale, CEO Peter Karl resigns unexpectedly

Manchester-based Eastern Connecticut Health Network President and CEO Peter Karl resigned from his role the day before the organization was sold to Los Angeles-based Prospect Medical Holdings, a for-profit company, according to the Hartford Courant. Mr. Karl cited "personal health issues" as the reason for his resignation that went into effect on Sept. 30.

Prospect Medical Holding reportedly spent $105 million to acquire Eastern Connecticut Health Network. An ECHN spokesperson said Mr. Karl's resignation would not affect the sale, finalized on Oct. 1.

"Supporting the health needs of Eastern Connecticut has been my primary focus for the past 11 years," said Mr. Karl in a prepared statement, according to the report. "Regrettably, I have made the challenging decision to resign, allowing me to focus on personal health issues."

Mr. Karl has served at the helm of ECHN since 2005, prior to which he was executive vice president and COO of the health network. He was instrumental in helping the sale of the health network go through, as he and other ECHN leaders felt that "increasing burden of taxes, debt and regulations have been drowning the nonprofit organization," the report notes.

Mr. Karl was charged with driving under the influence on Sept. 3. Mr. Karl had been expected to stay on after the sale, but that is no longer the case. He requested that he be placed on a leave of absence after he was arrested.  

"I believe this step will allow ECHN to move forward without distraction during this important period of transition," said Mr. Karl referring to his resignation in a prepared statement, the Hartford Courant reports.

More articles on executive moves:

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.