Lamont: State Will Ensure 3 CT Hospitals Stay Open Despite Bankruptcy

by Viktoria Sundqvist

Three Connecticut hospitals owned by Prospect Medical Holdings remain open and keep providing quality care despite its owner filing for Chapter 11 bankruptcy over the weekend, state officials reassured residents Monday. 

The bankruptcy filing has created “additional anxiety” for staff at Manchester Memorial Hospital – one of the three owned by Prospect – long-time nurse Ann-Marie Cerra said during a news briefing in Hartford on Monday afternoon.

“But we still show up every day to provide excellent care,” Cerra said. “That will continue – for our families, and for our community.”

Gov. Ned Lamont said the state is doing everything it can to ensure the lights stay on in Manchester and at Waterbury Hospital and Rockville General Hospital, that doctors and staff get paid and that quality of care is not compromised.

“They are open, they are capable, they are able to serve, they are ready to serve, they want to serve,” said Attorney General William Tong. 

Tong said the state will do “everything we have to do” to hold the owner accountable, including taking legal action, if that’s in the best interest of local residents. He is monitoring the bankruptcy proceedings closely, he said.

Deborah Weymouth, president and CEO of both Waterbury Health and the Eastern Connecticut Health Network that oversee the three hospitals under Prospect, said the bankruptcy is not an end, but “a new beginning.” 

“Our local team is prepared and ready to handle any emergency,” she said.

When asked about specifics, Weymouth said “payroll will be made” but would not provide any additional details as Prospect Medical Holdings is a privately held organization.

Lamont said the state is also trying to figure out who the next owner and operator of these hospitals is going to be, with Yale New Haven Health being a strong candidate as it already has a purchase agreement in place. 

“We’ll see if we can get that over the finish line,” Lamont said, which the state has been trying to do for a few years now, unsuccessfully. But he is hopeful there will be others willing to step up as well if that deal falls through, he said.

Yale New Haven Health signed a purchase agreement with Prospect in 2022 to buy the three hospitals for around $435 million, but Yale later sought to lower the price based on deteriorating conditions at the hospitals. The two companies have since been embroiled in lawsuits over the potential sale.

Prospect owns 16 hospitals in four states, including Pennsylvania, Rhode Island, and California. It bought the three Connecticut hospitals and their related networks in 2016 for nearly $300 million.

Since then, there have been ongoing complaints that the three hospitals are struggling to pay bills under Prospect’s ownership, including paying vendors, healthcare providers, and local property taxes. The company also owes the state about $105 million in taxes and is behind on pension payments.

Public Health Commissioner Manisha Juthani said the Department of Public Health has conducted regular inspections at the hospitals in the past two months and will continue to do so to ensure patient safety. It will also identify a protocol to monitor each of the facilities more in-depth.

Tong’s office in 2023 launched an investigation into Prospect’s financial practices. That investigation is ongoing, he said Monday.