State regulators are negotiating a consent agreement with Los Angeles-based Prospect Medical Holdings to close three deals to purchase healthcare facilities in Connecticut totaling $335 million, according to the Journal Inquirer.
Prospect officials said they hope to have the sales closed by Sept. 1.
Conn. state regulators approved the sale of Greater Waterbury (Conn.) Health Network and Waterbury (Conn.) Hospital to Prospect for $100 million, with an additional $55 million for capital projects at the two locations, according to the report. Prospect was also approved to buy Manchester, Conn.-based Eastern Connecticut Health Network, including Vernon, Conn.-based Rockville General Hospital and Manchester (Conn.) Memorial Hospital, for $105 million, with an additional $75 million to be spent on those properties in the next five years, according to the report.
As part of the agreement, the Connecticut state Department of Public Health's Office of Healthcare Access required Prospect to hire an independent monitor to oversee the facilities. The monitor will remain under contract and oversee both ECHN and the Waterbury facilities for at least two years, according to the report. Prospect officials said the position is currently vacant.
The monitor's responsibilities include making sure Prospect complies with state regulations and conducts on-site visits other affiliated sites. State regulators must approve the appointment, according to the report.
Members of the community expressed concern over Prospect's recent record of unsanitary conditions at one of its California hospitals. During a public hearing last spring, residents also expressed concern over whether Prospect would close Rockville General hospital, according to the report.
According to the agreement, Prospect is required to keep all services and facilities open for at least three years.