Hartford HealthCare confirmed Friday that is has entered into an agreement to acquire Manchester Memorial Hospital and Rockville General Hospital from Prospect Medical Holdings.
The Connecticut hospitals Prospect owns, Waterbury, Rockville General and Manchester Memorial — have been mired in ongoing financial and other issues, such as cutting services, as well as criticism by lawmakers and others.
Los Angeles-based Prospect Medical Holdings filed for bankruptcy in January.
The Hartford HealthCare agreement comes even as state officials and hospital leaders are in high-level discussions concerning the purchase of Bristol, Day Kimball and Waterbury Hospitals by the state-owned University of Connecticut Health Center, according to multiple sources with knowledge of the conversations, CT Mirror reported.
Hartford HealthCare said Friday it, “is deeply committed to advancing healthcare through greater access, affordability, health equity, and excellence, and “to that end, Hartford HealthCare has entered into an agreement regarding the two hospitals.
“The Stalking Horse Agreement provides, among other things, that the Stalking Horse Bidder will provide aggregate consideration in an amount equal to $86,100,000, minus certain working capital adjustments, where applicable, or plus certain working capital adjustments, where applicable,” a document filed in federal court says.
The document says ECHN Holdings is a wholly-owned subsidiary of Hartford HealthCare, and on Sept. 12, “pursuant to and in accordance with the Bidding Procedures, the Debtors (i) selected ECHN Holdings, Inc…. to act as the stalking horse bidder.”
“Given Prospect’s restructuring proceedings, this is a complex process that will unfold over the coming weeks,” the health care system said in a statement.
An email seeking comment was sent to Prospect Holdings.
State Sen. Saud Anwar, D-South Windsor, Senate chair of the Public Health Committee, and a doctor, said, “This is incredibly welcome news for health care in the state of Connecticut. I fully endorse and encourage Hartford HealthCare’s bid to purchase these hospitals, which would preserve local community care in Manchester, Vernon and their surrounding towns and cities.
“Hundreds of thousands of people rely on local health institutions like these, which made Prospect’s questionable ownership practices, including underinvesting in the hospitals, so concerning. Hartford HealthCare would be able to strongly enhance quality of care and investments in health care resources at both hospitals. Both of these hospitals have excellent staff and this shift would further enhance hiring and recruiting to ensure continued top-level care. Perhaps most hearteningly, if successful, this bid would reduce private equity’s presence in state healthcare.”
The system also said it “is uniquely qualified to transform healthcare for the better in these communities. We have the capability to stabilize and expand the workforce at these hospitals, provide support to enhance quality and safety, and advance strategic investments in people, programs, technologies, facilities, and community partners.”
Hartford HealthCare said in a statement that every hospital that joined it “has experienced measurable positive results that benefit patients — across-the-board top safety ratings from Leapfrog; improved access to primary care, urgent care, and specialty care close to home; and recruitment of world-class clinicians.”
Yale New Haven Health had sought to purchase the Prospect hospitals but then backed out of the deal, saying after a recent court hearing in ongoing lawsuits between the parties, “based on Prospect’s history of mismanagement of the Connecticut hospitals, it remains clear that they have never been in a position to close the transaction on the terms set in our 2022 Asset Purchase Agreement.”
