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

Yale has 'mounting concerns' about acquiring Prospect Medical hospitals

Yale (Conn.) New Haven Health signed a deal in November to acquire three hospitals owned by Prospect Medical. The slow regulatory approval process and a recent cyberattack that disrupted the hospitals' IT systems have Yale concerned about the viability of the transaction, according to the CT Mirror.

Yale had planned to acquire Waterbury (Conn.) Hospital and Eastern Connecticut Health Network, a two-hospital system based in Manchester, Conn., but the system has "mounting concerns" about the "deteriorating condition" of the hospitals post-cyberattack, Rob Hutchison, senior vice president of marketing and communications, told the CT Mirror on Sept. 28.

The attack targeted Prospect Medical, which has 16 locations across the U.S. The Connecticut-based hospitals were hit particularly hard, and they were forced to divert patients for a short time and temporarily halt some elective and outpatient services.

Yale said it hopes to connect with state lawmakers and Prospect Medical to devise a path forward. Executives from Waterbury and ECHN met with lawmakers in late September to urge an expedited approval for the transaction. Yale also wants the time frame for approval shortened, but the state has so far stuck to its statutory timelines.

"We believe every day that passes without a path forward puts the transaction more at risk," Mr. Hutchison said.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars