Hartford (Conn.) HealthCare has entered into an agreement to acquire Manchester Memorial Hospital and Rockville General Hospital in Vernon, Conn., from Prospect Medical Properties, a spokesperson for the health system confirmed to Becker’s.
Hartford HealthCare, a seven-hospital system, plans to purchase the two hospitals for about $86 million as part of Prospect Medical’s bankruptcy proceedings, according to court documents obtained by Becker’s. Hartford HealthCare was named the stalking horse bidder — the first buyer selected to set the floor price in a bankruptcy auction — for the hospitals.
“Given Prospect’s restructuring proceedings, this is a complex process that will unfold over the coming weeks,” a spokesperson for Hartford HealthCare said in a statement provided to Becker’s. “We have the capability to stabilize and expand the workforce at these hospitals, provide support to enhance quality and safety, and advance strategic investments in people, programs, technologies, facilities, and community partners.”
Yale New Haven (Conn.) Health had previously planned to acquire Manchester Memorial and Rockville General — as well as Waterbury Hospital — from Prospect for $435 million but sued to terminate the agreement last year. Yale New Haven accused the for-profit system of irresponsible financial practices, including missed rent and tax payments and allowing hospital facilities to deteriorate.
Prospect denied the claims and filed a countersuit alleging Yale New Haven breached the acquisition agreement by failing to deliver the purchase price and not making reasonable efforts to close the deal. The two systems recently reached a settlement agreement in principle to resolve the litigation, a Yale New Haven Health spokesperson told Becker’s.
Separately, Farmington-based UConn Health is in talks to acquire three hospitals — Waterbury Hospital, Bristol Hospital and Day Kimball Hospital. While no letter of intent has been signed and no structural arrangements finalized, acquiring all three could cost UConn Health about $400 million, according to CT Mirror.
