The closing of Los Angeles-based Prospect Medical Holding's $105 million acquisition of Manchester-based nonprofit Eastern Connecticut Health Network will be postponed until Oct. 1 as talks over municipal property-tax abatements continue, according to the Journal-Enquirer.
According to state officials, the delay is a result of legislation allowing municipalities to grant up to 10 years of property-tax relief to healthcare systems that agree to undertake major improvements.
Prospect executives, who closed the sale of Waterbury (Conn.) Hospital for $100 million in July, are asking the state to grant them seven years of property-tax relief on the newly acquired facilities for seven years.
Both sales agreements include capital improvement plans with $75 million earmarked for select ECHN hospitals and $55 million for Waterbury facilities.
Municipal officials said they want to ensure that jobs,healthcare services and facilities remain open and intact for at least five years following the sale, according to agreements signed between Prospect executives and state officials.