Yale New Haven (Conn.) Health is requesting to pay a lower price for its planned 3-hospital acquisition from Los Angeles-based Prospect Medical Holdings as the hospitals deal with a six-week-long cyberattack, Yale News reported Oct. 13.
In October, Yale signed an agreement to purchase three hospitals — Waterbury (Conn.) Hospital, Manchester (Conn.) Memorial Hospital, and Vernon, Conn.-based Rockville General Hospital — from Prospect for $400 million.
Yale is now requesting to lower that price and to receive financial support from the state, as the health system claims the three hospitals' financial issues were exacerbated by an Aug. 3 ransomware attack on Prospect facilities.
Under the request, the health system also proposed a "recovery plan" stating that it would provide management services to all three hospitals to aid their recovery from the attack.
"We need everyone to sit down to get a full understanding of the current financial condition of Waterbury and [Eastern Connecticut Health Network] hospitals, including the impact of the recent cyberattack, and determine a path forward," Dana Marnane, director of public relations and communications for Yale New Haven Health, told the publication.
During the attack, the three Prospect hospitals were not able to properly bill their patients or pay their medical supply vendors, which caused a financial roadblock for them.
Connecticut also had to provide $7 million in bailout to the hospitals, as they were unable to receive Medicaid reimbursements due to the ransomware attack.
Ransomware gang Rhysida has taken responsibility for the attack on Prospect facilities, claiming it has sold half the data it stole.
Becker's reached out to Prospect for comment and will update the story if more information is learned.