Connecticut
Prospect Medical Holdings files for bankruptcy, casting uncertainty over its Connecticut hospitals
Prospect listed over $400 million in debts but promised to keep its hospitals open.
Janice Hur
Staff Reporter
Tim Tai, Senior Photographer
On Jan. 11, Prospect Medical Holdings, the owner of three hospitals in Connecticut, filed for Chapter 11 bankruptcy.
Prospect’s filing listed debts of more than $400 million. The company hopes the bankruptcy process will allow it to expedite the sale of hospitals outside its home state, California, while stabilizing its financial footing.
In a press release, Prospect promised that all of its hospitals, medical centers and physician offices would remain open and provide uninterrupted patient care and services during the bankruptcy process.
“Prospect’s decision to file for bankruptcy is much larger than just the state of Connecticut – this is a national matter and of grave concern to many hospitals around the country,” a Yale New Haven Health spokesperson wrote to the News.
YNHH is in a legal battle over the $435 million hospital deal to acquire Prospect’s three Connecticut hospitals. In a lawsuit filed last year, YNHH alleged Prospect’s financial instability and mismanagement, citing inadequate investments, unpaid pension plans and growing debt.
Prospect’s bankruptcy filing also comes after months of legal battles with state governments, including Connecticut, Pennsylvania and Rhode Island, over allegations of financial mismanagement and underinvestment in their hospital systems. CBS News previously reported that in 2018, Prospect’s private equity owners took out a $1.12 billion loan which they used to issue its leadership a $457 million dividend.
Prospect cited the lingering effects of the COVID-19 pandemic, inflation and increased health plan denials as reasons for its financial woes.
Last week, a bipartisan Senate committee released a report with what it described as “overwhelming evidence of financial mismanagement” at Prospect, as the company’s “pursuit of financial results overshadowed priorities like patient safety and sustainable business operations.”
A Prospect spokesperson denied the allegations and claimed that the Senate report “drew false conclusions and omitted key facts.”
The bankruptcy filing needs to be approved by the U.S. Bankruptcy Court for the Northern District of Texas.
Bankruptcy’s fallout in Connecticut
As Prospect’s bankruptcy proceedings unfold, state officials, hospital leaders and legislators are working to ensure continuity of patient care and stability within Connecticut’s healthcare system.
Prospect’s three Connecticut hospitals — Waterbury Hospital, Manchester Memorial Hospital and Rockville General Hospital — provide critical services to their local communities, including emergency care, inpatient treatments and outpatient clinics.
Gov. Ned Lamont’s administration has emphasized the importance of maintaining operations at these facilities and has announced steps to oversee the process.
“We have a cross-agency team in place to ensure hospital operations continue uninterrupted and that employees and vendors continue to be compensated, as required by court orders,” Lamont said in a press release. “Our number one priority remains maintaining safety and quality of care at Prospect’s three Connecticut hospitals.”
State Attorney General William Tong emphasized that Prospect Medical Holdings remains accountable for its obligations to patients, employees and creditors.
Some legislators, including state Sen. Jeffrey Gordon, have called for swift and decisive action to address the potential fallout from the bankruptcy.
In an email to the News, Gordon described the bankruptcy filing as serious but expressed confidence in the state’s ability to manage the crisis. He highlighted the importance of prioritizing patient care and employee protection during this period of uncertainty.
“We cannot have Prospect Medical Holdings’ hospitals and ECHN close. They remain open, even through bankruptcy proceedings. I encourage people who need medical care to still seek it, especially during an emergency,” Gordon wrote to the News.
Gordon also renewed calls for the legislature to address issues tied to private equity in healthcare.
He has introduced the Putting Patients Over Profits Act, which would ban private equity from purchasing hospitals in Connecticut, prevent the sale of hospital land and assets to third parties for profit and strengthen protections for healthcare professionals against undue corporate influence.
Gordon described the bill as essential for maintaining the integrity of Connecticut’s healthcare system and ensuring that patient care remains the top priority.
“If this situation is not dealt with fully and soon, then it could have major, adverse impacts upon healthcare,” Gordon wrote to the News.
Less than a year ago, another major hospital system, Steward Health Care, filed for bankruptcy, sparking a backlash against private equity’s involvement in healthcare.
Prospect Medical Holdings was established in 1996.
Connecticut
Hartford community grieves men killed in police shootings
The Hartford community is grappling with two police shootings that happened within eight days of each other. Both started off as mental health calls about someone in distress.
People came together to remember one of the men killed at a vigil on Wednesday evening.
With hands joined, a prayer for peace and comfort was spoken for the family of Everard Walker. He was having a mental health crisis when a family member called 211 on Feb.19.
Two mental health professionals from the state-operated Capitol Regional Mental Health Center requested Hartford police come with them to Walker’s apartment on Capitol Avenue.
A scuffle ensued, and police said it looked like Walker was going to stab an officer. The brief fight ended with an officer shooting and killing Walker.
The family is planning to file a wrongful death lawsuit against the city.
“All I will have now is a tombstone and the voicemails he left on my phone that I listen over and over again at night just so I can fall asleep,” Menan Walker, one of Walker’s daughters, said.
City councilman Josh Michtom (WF) is asking whether police could have acted differently.
“To me, the really concerning thing is why the police were there at all, why they went into that apartment in the way that they did, in the numbers that they did,” he said.
The president of Hartford’s police union, James Rutkauski, asked the community to hold their judgment and wait for a full investigation by the Inspector General’s office to be completed.
A different tone was taken in a statement released about another police shooting on Blue Hills Avenue on Feb. 27.
Rutkauski said the union fully supports the officer who fired at 55-year-old Steven Jones, who was holding a knife during a mental health crisis.
In part, the union’s statement says that Jones “deliberately advanced on the officer in a manner that created an immediate threat of death or serious bodily injury. This was a 100% justified use of deadly force.”
The Inspector General’s office will determine if the officer was justified following an investigation.
The officer who shot Jones was the fourth to arrive on the scene. Three others tried to get him to drop the knife, even using a taser, before the shooting.
“It just feels like beyond the conduct of any one officer, we have this problem, which is that we send cops for every problem,” Michtom said. “I don’t know how you can de-escalate at the point of a gun.”
Jones died from his injuries on Tuesday.
The union’s statement went on to say that officers should not be society’s default for mental health professionals. The statement said in part, “We ask for renewed commitment from our legislators to remove police from being the vanguard of what should be a mental health professional response.”
The officers involved in both shootings are on administrative leave.
Connecticut
Connecticut Launches New Era for Community Hospital Care – UConn Today
Marked by a ceremonial ribbon cutting and attended by Governor Ned Lamont, state legislators, Waterbury officials, and community leaders, UConn Health celebrated the acquisition of Waterbury Hospital which as of today is now the UConn Health Waterbury Hospital.
“This is a defining moment for healthcare in Connecticut,” said Dr. Andrew Agwunobi, CEO of UConn Health Community Network. “We now have the opportunity to take the award -winning academic quality and service of UConn Health and share it with the wonderful employees, doctors and community of Waterbury.”
Connecticut Governor Ned Lamont described the initiative as a forward-looking investment in the future of healthcare access across Connecticut.
“Connecticut is leading with innovation,” said Connecticut Governor Lamont. “The UConn Health Community Network reflects a proactive approach to strengthening community-based care by connecting it directly to the capabilities of our state’s public academic medical center. What begins in Waterbury today, represents a new model designed to expand opportunity, access, and excellence for communities statewide.”
In addition to UConn Health Waterbury Hospital, the Network includes UConn Health Community Network Medical Group and UConn Health Waterbury Health at Home. The model preserves each member’s local identity and will grow thoughtfully over time to improve quality, expand access, and reduce the total cost of care.
“This reflects a bold step forward in how we think about healthcare in Connecticut,” said John Driscoll, Chair of the UConn Health Board of Directors. “Today we celebrate the beginning of a new approach to community-based care. We move forward with clarity of purpose and shared commitment to serve our communities better together.”
Comptroller Sean Scanlon highlighted the significance of the model for the long-term evolution of healthcare delivery in Connecticut.
“This partnership represents thoughtful leadership at a pivotal time for healthcare,” said Connecticut Comptroller Sean Scanlon. “By aligning community hospitals with academic medicine, Connecticut is building a modern framework that positions our healthcare system to meet the needs of patients today and into the future.”
“Hosting this celebration on our campus is deeply meaningful for our staff, physicians and the families we serve,” said Deborah Weymouth, President of UConn Health Waterbury Hospital. “Waterbury’s legacy of care continues, and we are tremendously proud to have a strong partner who is deeply committed to our community and help lead this next chapter for healthcare.”
Welcome UConn Health Waterbury Hospital!
Connecticut
Multiple cars involved in crash on I-84 in Hartford
A multi-vehicle crash temporarily close Interstate 84 on Tuesday night.
The crash happened around 8:30 p.m. and involved four cars, according to the Hartford Fire Department.
Fire crews arrived at the scene and helped one of the drivers who was trapped. The driver was then taken to a local hospital for evaluation and treatment.
Four other people reported minor injuries but declined ambulance treatment at the scene, officials said.
I-84 East was temporarily shut down as crews responded but has since reopened.
The Connecticut State Police is investigating the crash.
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