CT Greenlights Hartford HealthCare Purchase of Two Prospect Hospitals

The approval came under a new expedited “emergency certificate of need” process, which requires a decision within 60 days of a completed application.

The Connecticut Office of Health Strategy (OHS) on Wednesday approved Hartford HealthCare’s $86.1 million acquisition of Manchester Memorial and Rockville General hospitals, both formerly operated by bankrupt Prospect Medical Holdings.

The approval came under a new expedited “emergency certificate of need” process, which requires a decision within 60 days of a completed application.

“This is a positive outcome to an initially challenging situation,” said Gov. Ned Lamont. “Ensuring quality services remain both accessible and affordable for our families and communities has always been one of my top priorities.”

The two hospitals, previously part of Prospect Medical’s Connecticut portfolio, struggled financially in recent years. A prior deal to sell all three state hospitals to Yale New Haven Health for $435 million fell through after cyberattacks in 2023 and prolonged litigation over valuation. Prospect filed for bankruptcy in January 2025, effectively halting the Yale transaction.

Under OHS conditions, Hartford HealthCare must maintain key services at both hospitals for at least three years. Manchester Memorial is required to retain labor, delivery, intensive care, and emergency services, while Rockville General must continue emergency and behavioral health care. However, Rockville General no longer functions as a full-service hospital, operating primarily as a satellite of Manchester Memorial.

Hartford HealthCare has previously faced criticism for service reductions, including the cessation of births at Windham Community Hospital in 2020. Officials cited low birth volumes and staffing challenges as the rationale.

The acquisition marks the first hospital transaction reviewed under Connecticut’s new expedited approval pathway for facilities in bankruptcy, designed to avoid prolonged delays in critical healthcare transitions.

Prospect’s third Connecticut hospital, Waterbury, is set for acquisition by the University of Connecticut Health Center. OHS will hold a public hearing on the proposed UConn Health purchase on December 19, with a decision due by February 9, 2026.

Spokespeople for Hartford HealthCare and Prospect Connecticut did not respond to requests for comment before publication.

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