Los Angeles-based Prospect Medical Holdings, which is planning to sell three Connecticut hospitals to Yale New Haven Health, owes more than $1.6 million in taxes in the state, according to a CT Insider Aug. 21 report.
The for-profit Prospect Medical Holdings, owners of the Eastern Connecticut Hospital Network attempting to sell the hospitals, owes the taxes in three separate municipalities, the report said.
The Connecticut attorney general's office confirmed it is investigating the situation regarding Prospect Medical. Back taxes and interest total approximately $1.67 million, the report said.
The three hospitals involved are struggling financially, and Yale officials believe the acquisition will help stabilize them.
"This is an opportunity to stabilize the Prospect hospitals, but it won't be easy," Yale New Haven CEO Chris O'Connor said at a recent meeting. "This is a very difficult time for all Connecticut hospitals in the wake of the COVID-19 pandemic, and Yale New Haven Health is dealing with its own challenges."