Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Eastern Connecticut Health Network sale delayed

The closing of Los Angeles-based Prospect Medical Holding's $105 million acquisition of Manchester-based nonprofit Eastern Connecticut Health Network will be postponed until Oct. 1 as talks over municipal property-tax abatements continue, according to the Journal-Enquirer.

According to state officials, the delay is a result of legislation allowing municipalities to grant up to 10 years of property-tax relief to healthcare systems that agree to undertake major improvements.

Prospect executives, who closed the sale of Waterbury (Conn.) Hospital for $100 million in July, are asking the state to grant them seven years of property-tax relief on the newly acquired facilities for seven years.

Both sales agreements include capital improvement plans with $75 million earmarked for select ECHN hospitals and $55 million for Waterbury facilities.

Municipal officials said they want to ensure that jobs,healthcare services and facilities remain open and intact for at least five years following the sale, according to agreements signed between Prospect executives and state officials.

More articles on transactions and valuations:
SSM Health to take over 26 St. Louis Walgreens in-store clinics
UMass Memorial Health System considers merging Leominster and Clinton campuses
AU Health, Philips roll out advanced life support monitors

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Whitepapers

Featured Webinars