Lamont Guarantees Patient Safety as Connecticut Hospital Operator Files for Bankruptcy
Following the filing of bankruptcy petitions by the proprietors of three local hospitals on Monday, Governor Ned Lamont and other state authorities made an effort to reassure state patients.
Over the weekend, Prospect Medical Holdings, based in California, filed for Chapter 11 bankruptcy. The hospitals at Waterbury, Manchester Memorial, and Rockville General are owned by the faltering private equity group.
According to the firm, the reorganization will facilitate the sale of further hospital facilities, such as those in Rhode Island and Pennsylvania.
“Divesting our operations outside of California will ensure that they receive necessary financial support so that the communities that rely on those facilities will maintain continued access to highly coordinated, personalized, and critical healthcare services long into the future,” Prospect Holdings CEO Von Crockett stated.
However, a proposed acquisition by Yale-New Haven Health was questioned in the application.
In 2022, Yale-New Haven agreed to pay $435 million to acquire the three hospitals in Connecticut; however, the agreement has been on hold ever since.
The state’s Certificate of Need procedure, which is necessary for any hospital mergers or transactions, caused the purchase to be delayed.
Then, citing declining conditions at the hospitals, Yale New Haven filed a lawsuit in 2024 seeking to change or terminate the agreement.
“Yale New Haven Health raised the alarm about this inevitability in the lawsuit we filed last year, recognizing Prospect’s lack of investment and mismanagement of the Connecticut Prospect hospitals,” according to the network.
Lamont and William Tong, the attorney general, were optimistic that an agreement could be reached. They also stated that they will exert every effort to guarantee a sale that safeguards patients’ interests.
Tong also told reporters that although he hasn’t filed any cases yet, he would think about doing so against Prospect if necessary to protect patient care.
According to Dr. Manisha Juthani, commissioner of the Department of Public Health, her organization has had a monitor in Waterbury Hospital for weeks following a consent order.
Prospect and the DPH are also discussing increasing monitoring, including the use of monitors, at the other two sites.
ISP: Ohio Man Tries to Escape Arrest by Driving Off Tow Truck, Now in Custody
The three hospitals are dedicated to patient care and are collaborating with the state, according to Deborah Weymouth, President and CEO of Prospect’s Connecticut operations.
Some senators have questioned whether the state should provide funding to help facilitate the sale, given Yale New Haven’s resistance to the agreement.
“At some point, the public policy question becomes what happens to the future of these hospitals, to the people who rely on them for care,” Rep. Jason Rojas, (D-Majority Leader) stated.
Woman Charged with Abuse After Police Discover Underweight Dogs in Her Care
R-Minority Leader Rep. Vincent Candelora even said that the state bears some of the blame for the deal’s delay following the drawn-out clearance procedure.
A procedure known as receivership allows state authorities to take control of nursing facilities, although hospitals are not subject to this rule.
In response to a question about developing a procedure to accomplish that, Lamont maintained his belief that a transaction would proceed. Additionally, he stuck to his position that the government shouldn’t provide incentives for a private agreement.
REFERENCE – Lamont promises patient safety as hospital operator files for bankruptcy