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Debt, cyberattack threaten Yale New Haven acquisition of Prospect hospitals

The CEO of Derby, Conn.-based Griffin Hospital warned Gov. Ned Lamont that the debt burden of the hospital's parent company, Prospect Medical Holdings, and a recent cyberattack could complicate a potential sale to Yale New Haven Health, CT Mirror reported Sept. 21.

Griffin Hospital CEO Patrick Charmel told the governor that the hospital has been awaiting money from Prospect to pay their vendors. He said that the debt was over $40 million. In August, Prospect Medical Holdings' facilities were hit by a cyberattack that caused a disruption in some services.

In 2022, Yale New Haven (Conn.) Health announced that it had signed an agreement to acquire Prospect's Connecticut facilities. The sale has not been completed. 

"During our conversation, Justin (CEO of Waterbury Hospital) told me that Prospect Medical Holdings' long-awaited debt refinancing that was supposed to improve liquidity and provide working capital that would flow to company-owned hospitals like Waterbury, Manchester and Rockville finally occurred, but none of the proceeds found their way to Connecticut," Mr. Charmel told the governor.

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