Los Angeles-based Prospect Medical Holdings, a for-profit hospital operator, has been hitting the headlines recently for a ransomware attack it experienced Aug. 3 from which it is still trying to recover.
But while it may be the biggest headache the 16-hospital operator is dealing with, there are other pain points on the horizon.
The system is also trying to sell three struggling Connecticut hospitals to Yale New Haven (Conn.) Health but owes more than $1.6 million in taxes in the state, according to local media reports.
In addition, a Medical Properties Trust deal to secure $375 million in funding for the system has been put on hold by regulators in California.
"Prospect Medical Holdings, like all health care organizations, carries insurance to help cover costs resulting from data security incidents, due to the increasing frequency of these incidents in recent years," Prospect said in a statement provided to Becker's. "The company is processing the payment of back taxes for Eastern Connecticut Health System and expects to have resolved the issue by the end of this week," it added.
The various challenges have "little or no relevance to the overall financial strength of our company," Prospect said.