Connecticut
CT governor meets with Yale New Haven and Prospect Medical to try for deal on hospitals
Gov. Ned Lamont met with the two chief executive officers involved in the plan for Yale New Haven Health to purchase Prospect Medical Holdings on Wednesday in an effort to move the stalled negotiations out of the courtroom.
Lamont met for more than an hour with YNNH CEO Chris O’Connor and Prospect Medical CEO Von Crockett in his office at the state Capitol Wednesday morning.
The two sides and their lawyers left without an agreement but are expected to meet again Thursday on their own. An attorney from Medical Properties Trust — an entity also involved in the proposed deal because it owns the Manchester Memorial, Rockville General and Waterbury hospital buildings that Prospect operates — also participated in the meeting.
When asked by The Connecticut Mirror if he thought that a deal could be made, Crockett responded, “Doesn’t everybody want a deal?”
Asked if residents should be concerned about the financial status of the three Prospect hospitals, Crockett said, “No one should be concerned that any of the hospitals will close.”
Lamont’s spokesperson Julia Bergman said the governor was encouraged by the meeting even if the parties left without an agreement.
“This is the first time the two CEOs have been in a room together, so we take that as a sign of progress,” Bergman said.
She said that Lamont did not offer to put any state money into the deal, as Yale had requested. Lamont has maintained that it is a private deal and the two parties need to work out.
“The governor wanted to get everyone back together, away from the courtroom, to see if there was a way to move this forward,” Bergman said. “He continues to see this as the best deal and Yale as the best owner for the three hospitals.”
Dana Marnane, a spokeswoman for YNHH, said Lamont sought the meeting with hospital executives Wednesday, but she declined to provide details about the discussion.
“At the request of Gov. Lamont, Yale New Haven Health leaders were in Hartford today meeting with the governor and representatives from Prospect and Medical Properties Trust,” she said. “We thank Gov. Lamont for facilitating this discussion and we will keep our community apprised if there are any updates to share.”
The state authorized the acquisition in March. The Office of Health Strategy had been criticized by some lawmakers for taking more than a year to issue its approval, which won’t take effect if the two sides can’t reach a sale agreement.
YNHH had announced in 2022 that it reached a deal with Prospect to buy the hospitals for $435 million.
But following a cyberattack in August and revelations that Prospect owes tens of millions of dollars to vendors, physicians under contract at the hospitals and the state in taxes, Yale asked Prospect to revise the purchase price, which Prospect has been reluctant to do so.
As part of the proposed acquisition in Connecticut, YNHH wants to purchase back the real estate of the three hospitals from MPT, which would mean they would no longer be on the hook for rent payments. Under the current sale proposal, MPT would receive $355 million, or roughly 80% of the total deal value.
Earlier this month, Yale filed a lawsuit against Prospect Medical, charging that Prospect breached its contract with Yale by defaulting on rent and tax liabilities, allowing its facilities to deteriorate, mismanaging assets, “driving away” physicians and vendors and engaging in “a pattern of irresponsible financial practices.”
The CT Mirror previously reported that surgeries at Prospect’s Connecticut hospitals were being postponed because health care providers didn’t have the needed resources. Contracts with traveling nurses and technicians were in jeopardy and had remained in place only on a “week-to-week” basis at one point last fall, physicians at the hospitals said.
The cyberattack, which crippled operations for over six weeks last August, also set the hospitals back further financially, executives have said.
In January, the CT Mirror reported that Prospect neglected to pay $67 million in taxes. The state has filed three liens against the California-based company.
“Prospect and the selling entities have not complied with their obligations to providers, failing to pay their physician groups, medical staff and vendors and, in turn, damaging irretrievably their relationships with the very individuals and entities that allow the businesses to provide medical care to their patients,” the lawsuit claims.
“Prospect and the selling entities have failed to ensure that their information technology systems have even the most basic protections against data breaches.”
In a statement when the lawsuit was filed, Prospect Medical officials called the lawsuit “a blatant, 11th hour attempt by Yale Health to back out” of the contract.
“Despite the claims made by Yale in its complaint, Yale only notified Prospect for the first time of its concern that there had been a material adverse effect on the hospitals’ finances and operations on March 27, 2024. In response, and following Yale’s failure to obtain an $80 million grant from the state, we offered Yale a good-faith price reduction in an attempt to move the negotiations forward and complete the transaction.”
Prospect officials said patient volumes and finances at their Connecticut facilities have “rebounded significantly.”
Senate Republican Leader Stephen Harding, Sen. Heather Somers, Ranking Senator on the Public Health Committee and Sen. Jeff Gordon, a doctor and a member of the Public Health Committee said in a joint statement, “We are encouraged that the governor and the CEOs met today for an extended period of time. Bringing the parties together is a positive development, and the discussions must continue. We are also encouraged to hear that there should not be a concern that any hospitals will close. We remain available to all stakeholders to assist with a swift resolution on this matter. Our collective communities’ health care accessibility – as well as access to health care jobs – depends on it.”
Dave Altimari and Jenna Carlesso are reporters for The Connecticut Mirror (https://ctmirror.org/ ). Copyright 2024 © The Connecticut Mirror.
Connecticut
A Pair Of Connecticut Coaches Reach Win Milestones In First Round Of CIAC Division II State Tournament
The first round of the Connecticut Interscholastic Athletic Conference (CIAC) boys basketball Division II and IV state tournaments is complete.
Both divisions began their respective playoffs on Friday with the second round of each division continuing Monday.
Many stories emerged from Friday night’s slate of games, but two Division II coaches’ career win milestones highlighted the madness.
Scot Wenzel And Bryan Moretti Now Have 500 Wins Between Them
Two teams from the Central Connecticut Conference, Newington and Hall had special moments for each of their head coaches.
Over in Newington, the No. 6 Nor’Easters hosted and defeated Conard, 65-43. The win was also head coach Scot Wenzel’s 300th career win. He has oached the Nor’Easters from 2003–2017 and 2022-present.
“It means that I’ve coached a lot of really good players,” said Wenzel following the accomplishment. “I’m fortunate to make connections with them on the court and also off the court, and glad I still have connections with a lot of those guys now. They all hold a special place in my heart.”
Another milestone looms for Newington in its Monday second-round matchup against Hillhouse, as senior Josiah Sims is eight rebounds away from his 1,000th career rebound. The talented senior already reached 1,000 career points earlier this season.
In the area and just one town over, Hall head coach Bryan Moretti notched the 200th win of his career in a close 49-46 victory over the visiting Cheney Tech Chargers. Moretti is in his 23rd season as the Titans’ head coach, coaching them since the 2003 season.
Hall will host No. 9 Fairfield Ludlowe in the second round of the tournament on Monday.
Over In Division IV, St. Paul’s Sean McMahon Had A Career Game
In the Division IV State Tournament, St. Paul senior Sean McMahon scored a career-high 46 points in his team’s 75-50 first-round win over No. 22 Suffield.
McMahon scored 10+ points in three out of four quarters and had 23 points in each half.
The senior who had the hot hand let his shots come naturally and felt confident about them.
“When the first couple fall, you want to get a couple more up and see if those fall, but I’m not going to go out there and force it,” McMahon told the Bristol Press. “I just let the game come to me.”
St. Paul will face No. 6 Windham Tech on the road Monday in the second round on March 9.
Connecticut
2 injured in motorcycle, pedestrian crash in Hartford
Two people were injured in a crash involving a motorcyclist and a pedestrian, according to officials.
The Hartford Fire Department was called to the crash just before 6:30 p.m. Officials said the crash happened on Albany Avenue between Edgewood Street and Sigourney Street.
When first responders got to the scene, they found two men injured but conscious and breathing. Fire officials said one person was in critical condition with serious injuries and another had an injury to his arm.
Both were taken to a nearby hospital for treatment.
The Hartford Police Department is investigating the crash.
Connecticut
Connecticut is Poised to Lose More Residents If It Fails to Fix Affordability
Connecticut may become a ghost town if lawmakers fail to address affordability concerns — and the warning signs are becoming harder to ignore.
A new AARP survey of residents aged 45 and older shows deep concern about rising living costs. Respondents cited housing, utilities, and medical care as major financial pressures, fueling broader worries about long-term financial security and the ability to afford retirement in Connecticut.
The numbers are sobering: 72% of respondents say they are concerned about the cost-of-living, up from 66% in 2023; more than half worry about being able to retire in Connecticut; and 33% report difficulty affording healthcare.
Those anxieties are translating into real financial strain. Nearly half say they have tapped into savings to cover rising costs. Forty-two percent have stopped saving for retirement altogether. Thirty-six percent struggle with monthly bills. Thirty percent have difficulty affording food. Thirteen percent report skipping medications due to cost.
These are not marginal concerns. They represent warning signals from a key demographic in one of the nation’s oldest states. Connecticut’s median age is 41.2, the seventh highest in the country. Meanwhile, the 35-to-49 age group declined by 13.1 percent between 2010 and 2022 — more than any other age group.
Older residents are increasingly relocating to states such as North Carolina, South Carolina, Florida, and Texas. The reasons are familiar: lower taxes, lower housing costs, and lower energy bills.
Despite a relatively high average annual income, Connecticut residents face some of the highest property taxes, income taxes, and corporate taxes in the country. At the same time, the state struggles with elevated housing costs and some of the highest utility rates nationwide. For retirees, the financial math often simply doesn’t work.
In the AARP survey, 92% of respondents agreed that the state government should prioritize utility rate and regulatory changes. That is telling.
Energy policy illustrates the broader challenge. Over the past several decades, Connecticut has adopted increasingly ambitious renewable energy mandates, including Renewable Portfolio Standards (RPS). This measure severely restricts utilities’ ability to find the cleanest and most efficient means of providing electricity. While environmental goals are important, restricting utilities’ energy sourcing options has contributed to higher costs.
The Public Benefits Charge, a state-imposed fee on electric bills that funds various renewable energy programs, has become another driver of high rates. When policy costs are layered onto utility bills, households feel it immediately.
Connecticut’s long-term emissions goals are ambitious. But energy policy must balance environmental objectives with cost and reliability. In Alternatives to New England’s Affordability Crisis, a coalition study of New England’s energy market found that a more diversified portfolio, including nuclear and natural gas, could significantly lower costs while maintaining reliability and reducing emissions.
The General Assembly is currently considering a bill to establish a workforce that would advance nuclear energy technologies. That is a conversation worth having. Energy decisions that improve affordability and reliability would directly address the concerns raised in the AARP survey.
Affordability, however, extends beyond energy. Government spending and taxation play a central role in everyday costs. When taxes and regulatory burdens increase, those costs ripple outward — affecting housing prices, transportation costs, and grocery bills.
Even proposals framed as targeting large corporations can affect consumers. For example, H.B. 5156, would impose retroactive costs on fossil-fuel producers. Industry groups estimate it could raise gasoline prices by nearly 33 cents per gallon. For families already struggling with food and medical bills, even incremental increases matter.
Gov. Ned Lamont has spoken about the need for growth and reform to strengthen Connecticut’s future. Growth, however, requires a competitive cost structure.
If lawmakers truly believe affordability is the top issue this session, structural reform, not temporary rebates, is required. That means reassessing the tax and regulatory environment that drives costs higher.
Connecticut’s affordability challenge is not inevitable. It is the cumulative result of policy choices. If those choices are not revisited, the state will continue to lose residents, particularly those in their prime earning years and those approaching retirement, to more affordable alternatives.
The survey results are not just statistics. They are signals. Lawmakers would be wise to take them seriously.
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