Prospect will purchase Waterbury Hospital, its outpatient practices, visiting nurse services and its shares in the for-profit Waterbury Heart Center and regional cancer center. Prospect officials plan to spend roughly $55 million at the property over the next several years.
The Connecticut Attorney General’s Office put 15 stipulations on the sale, including that Prospect must obtain court approval for any charitable funds and must file reports detailing the net profit made from the sale.
Documents filed in the Office of Health Care Access said Prospect was not expected to obtain any net profits on the sale. Instead, it will assume $27 million in unfunded nurses’ pension liabilities and another $12 million in liabilities for a cash-balance pension plan for other employees, according to a report in the Hartford Courant.
The Office of Health Care Access will continue to track Prospect’s promised capital funding and will regularly review the organization’s cost savings strategies.
More articles on transactions and valuations:
7 recent hospital transactions and partnerships
HealthSouth, Novant plan to build inpatient rehabilitation hospital
Seton Hall, Hackensack Meridian Health cinch site for new medical school
