Farmington-based UConn Health is in talks to purchase three hospitals — Bristol Hospital, Day Kimball Hospital and Waterbury Hospital — for nearly $400 million, according to CT Mirror.
No letter of intent has been signed and no structural arrangements have been finalized.
UConn Health is preparing a bid for Waterbury Hospital as part of Los Angeles-based Prospect Medical Holdings’ Chapter 11 bankruptcy proceedings. The system is also in discussions with Bristol and Day Kimball hospitals, a move that could establish a new public health system in Connecticut, according to CT Insider.
Waterbury Hospital is one of three Connecticut hospitals owned by Prospect Medical, which filed for Chapter 11 bankruptcy in January and has been divesting hospitals across its portfolio.
John Brady, RN, vice president of AFT Connecticut — representing more than 4,000 providers and clinicians — said union leaders have been in close communication with the governor’s office and state lawmakers throughout Prospect’s bankruptcy process, urging the state to play an active role to ensure continued access to care. He welcomed reports of UConn Health’s potential involvement.
“Reports that UConn Health may be stepping in to provide a solution are welcome news. The medical academic center has experienced the highest increase in percentage of gross revenue out of any health system in the state since 2020,” Mr. Brady said in a Sept. 17 statement shared with Becker’s. “Growing UConn Health by affiliating with bankrupt or struggling independent facilities would further strengthen that success.”
Mr. Brady also warned that allowing struggling independent hospitals to fail would “invite takeover by private equity and replicate the crisis” facing Manchester Memorial, Rockville General and Waterbury hospitals’ patients, providers and communities.
Yale New Haven Health had previously planned to acquire Waterbury, Manchester Memorial and Rockville General hospitals from Prospect for $435 million but sued to terminate the agreement last year. The system accused Prospect of irresponsible financial practices, including missed rent and tax payments and allowing hospital facilities to deteriorate.
Prospect denied those claims and filed a countersuit alleging Yale New Haven Health breached the acquisition agreement by failing to deliver the purchase price and not making reasonable efforts to complete the deal.
Neither UConn Health nor Yale New Haven Health responded to Becker’s request for comment.
