Hartford HealthCare's $86.1M Bid for Prospect Hospitals Accepted, Awaits Court Approval

Hartford HealthCare's $86.1 million bid to acquire two Connecticut hospitals from bankrupt Prospect Medical Holdings has been accepted, marking a significant development in the ongoing restructuring of the state's healthcare landscape. The deal, which includes Manchester Memorial and Rockville General hospitals, now awaits final approval from a bankruptcy judge.

Prospect's Bankruptcy and Asset Sale

Prospect Medical Holdings, facing financial difficulties, filed for Chapter 11 bankruptcy earlier this year. The company's Connecticut assets, including Manchester Memorial and Rockville General, have been at the center of a complex legal dispute involving multiple healthcare providers.

Hartford HealthCare, a nonprofit system operating seven acute care hospitals and 500 locations across Connecticut, Massachusetts, and Rhode Island, emerged as the sole bidder for the two facilities. The system's initial "stalking horse" bid of $86.1 million was the only offer received by the October 16 deadline, leading to the cancellation of a planned auction.

Legal Dispute and Settlement

The acquisition comes in the wake of a contentious legal battle between Prospect and Yale New Haven Health. Yale New Haven Health had previously sought to acquire Manchester Memorial, Rockville General, and Waterbury Hospital for $435 million. However, the deal fell through in 2024 when Yale New Haven Health attempted to back out, citing concerns about the hospitals' conditions.

The resulting lawsuit was temporarily halted by Prospect's bankruptcy filing. In a recent development, Prospect and Yale New Haven Health reached a $45 million settlement, paving the way for Hartford HealthCare's bid to move forward.

Future Plans and Implications

Hartford HealthCare has expressed its commitment to revitalizing the acquired facilities. In a statement, the company outlined plans 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."

The acquisition, if approved, will further solidify Hartford HealthCare's presence in Connecticut. The system reported $6.5 billion in operating revenue for the 2024 fiscal year and employs over 44,000 people across its network.

As the healthcare landscape in Connecticut continues to evolve, attention now turns to the fate of Waterbury Hospital, the third facility originally involved in the Yale New Haven Health deal. Reports indicate that UConn Health has authorized a bid of up to $13 million for this asset, signaling further potential changes in the state's healthcare provider network.