Connecticut has told Los Angeles-based Prospect Medical Holdings that it wants monitors on board at its three state hospitals amid ongoing disputes with Yale New Haven (Conn.) Health over a $435 million stalled deal for the facilities.
"We're in the red zone, getting into the end zone is pretty tough," Connecticut Gov. Ned Lamont said during an Oct. 22 press conference regarding the deal. "We've met with Prospect, Yale separately, met with them together twice, doing everything we could to get this deal done on behalf of the patients. Right now, this deal lingers on."
The hospitals 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. In early May, Yale New Haven Health filed a lawsuit against Prospect to exit the deal, and on Nov. 3, the Justice Department also issued a civil investigation demand to Prospect.
The dispute heated up in mid-October when Prospect accused Yale New Haven's board members of conducting "an aggressive campaign" both in court and through the media to further slow the hospital transaction and drive down the hospital prices to secure a lower purchase price. Yale New Haven then pointed the finger at Prospect for claims of failed payments to its physicians and suppliers and committing multiple violations in the parties' hospital agreement.
"Without revised terms, we don’t see a path forward that would allow us to make the necessary investments in these facilities without jeopardizing our system’s financial sustainability and uphold our commitment to the communities that we currently serve," a spokesperson for Yale New Haven said in an Oct. 18 statement shared with Becker's.
While Mr. Lamont said he is not currently concerned about patient care and safety at the hospitals, utilizing a monitor would help keep a watchful eye on disputes like this to ensure these things are not compromised.
"Prospect has been ready to close the transaction with YNHHS since regulatory approvals were granted in the spring," a spokesperson for Prospect said in an Oct. 24 statement shared with Becker's.