Hartford (Conn.) HealthCare has secured the winning bid to acquire Manchester Memorial Hospital and Rockville General Hospital in Vernon, Conn., for $86.1 million, according to an Oct. 18 bankruptcy court filing cited by CT Insider.
No other buyers submitted bids before the Oct. 17 deadline, canceling a bankruptcy auction that had been scheduled for Oct. 22, according to the report. The hospitals are currently owned by Los Angeles-based for-profit Prospect Medical Holdings, which filed for bankruptcy in January.
Hartford HealthCare agreed to purchase the hospitals and affiliated entities “free and clear of liens, claims, encumbrances, and interests,” according to the court documents. The transaction includes the land beneath the facilities, which was sold to Birmingham, Ala.-based Medical Properties Trust — one of the world’s largest hospital real estate owners — through a 2019 sale-leaseback agreement.
The transaction requires approval from the federal judge overseeing Prospect’s bankruptcy case, as well as regulatory clearance from the state.
Should the transaction close, the two hospitals will expand Hartford HealthCare’s network to nine hospitals and nearly 2,855 licensed beds — making it the largest health system in Connecticut by several metrics, according to CT Insider. For comparison, Yale New Haven Health operates five hospitals with a combined 2,568 licensed beds.
“We are pleased and enthusiastic about being selected as the successful bidder,” Hartford HealthCare said in a statement to Becker’s. “We look forward to the opportunity 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.”
The system added that all hospitals joining Hartford HealthCare have seen “measurable positive results,” including improved safety ratings, enhanced local access to care, leading-edge technology and recruitment of world-class clinicians.
The planned acquisition follows a previous, failed deal involving Yale New Haven Health, which sued Prospect last year to exit a $435 million agreement to acquire the same two hospitals along with Waterbury Hospital. Yale New Haven accused Prospect of financial mismanagement, including missed rent and tax payments and neglecting facility upkeep. Prospect denied the allegations and countersued, alleging breach of contract. The parties have since settled competing lawsuits.
Separately, Farmington, Conn.-based UConn Health is in talks to acquire three other Connecticut hospitals — Waterbury Hospital, Bristol Hospital and Day Kimball Hospital — in a potential $400 million deal.
