Connecticut Gov. Ned Lamont held a meeting the week of Sept. 16 with leaders of Los Angeles-based Prospect Medical Holdings and Yale New Haven (Conn.) Health to try and provide "tough love" to revive a stalled $435 million deal for Yale New Haven to take on three Prospect hospitals in Connecticut.
The two parties have battled for months in court over the hospitals. Yale New Haven Health filed a lawsuit in early May against Prospect to get out of the deal. The Justice Department also issued a civil investigation demand to Prospect on Nov. 3. The hospitals in question are Waterbury (Conn.) Hospital; Manchester (Conn.) Memorial Hospital, part of Prospect's Manchester-based Eastern Connecticut Health Network; and Rockville General Hospital in Vernon, Conn.
"Before they run to the courtroom, we got Yale New Haven and Prospect back together in the governor's office," Mr. Lamont said during an interview recording, obtained by Becker's. "We're working towards an agreement. … I'm trying to do everything I can to get this deal done."
A spokesperson for Yale New Haven Health said in a Sept. 26 statement shared with Becker's that the health system continues to talk with Prospect. Moreover, the spokesperson said Yale New Haven's top priority is to negotiate a fair purchase price that allows the system to make needed investments in the facilities "in light of uncovering Prospect's recent, serious mismanagement of their assets and outstanding taxes owed to the state and municipalities."
When asked if Connecticut should step in to financially support the Prospect hospitals, similarly to how Massachusetts has done with Dallas-based Steward Health Care's state hospitals, Mr. Lamont said he is reluctant to do that. Steward sought Chapter 11 protection May 6 and has been working to offload its 31 hospitals.
"These are hospitals that have value," Mr. Lamont said. "[Prospect and Yale New Haven Health are] quibbling about how much value they should pay. They had a purchase agreement two years ago. So, before we put taxpayer dollars into this private transaction, I'm a little hesitant on that front."
Becker's has reached out to Prospect Medical Holdings for comment and will update this story should more information become available.