Hartford HealthCare to Acquire Two Prospect Medical Hospitals for $86.1 Mn

The announcement marks the latest ownership development for Prospect’s three Connecticut hospitals, Manchester Memorial, Rockville General, and Waterbury Hospital.

Hartford HealthCare has been selected as the successful bidder to acquire Manchester Memorial and Rockville General Hospitals, two Connecticut facilities owned by bankrupt hospital operator Prospect Medical Holdings.

Prospect Medical Holdings filed for bankruptcy protection in January, with the sale of its hospitals across the United States being managed by the U.S. Bankruptcy Court in Northern Texas.

Last month, ECHN Holdings Inc., a wholly owned subsidiary of Hartford HealthCare, submitted an $86.1 million bid for the two hospitals. Court documents confirmed that Prospect did not receive any additional bids. The company had originally paid $105 million for the two facilities when it purchased them in 2016.

Tina Varona, spokesperson for Hartford HealthCare, said the health system looks forward to the “opportunity to stabilize and expand the workforce at these hospitals, provide support to enhance quality and safety, and advance strategic investments in people, programs, technologies, facilities, and community partners.”

“Every hospital that has joined Hartford HealthCare has experienced measurable positive results that benefit patients — including across-the-board top safety ratings, improved access to care close to home, leading-edge technology and the recruitment of world-class clinicians,” Varona wrote in an emailed statement.

The acquisition must still obtain a state “certificate of need” approval, overseen by the Office of Health Strategy (OHS).

The OHS and the Lamont administration previously faced criticism over delays in approving a $435 million deal signed in 2022 for Yale New Haven Health to acquire three Prospect-owned hospitals. That agreement ultimately failed after legal disputes between Yale New Haven and Prospect, which were later settled when Yale New Haven paid $45 million to end the litigation.

During the recent legislative session, lawmakers passed a measure allowing an expedited review timeline for hospitals that have filed for bankruptcy. Under this new process, OHS must issue a final decision within 60 days once an application is deemed complete, according to Boyd Jackson, OHS’s director of legislation and regulation.

If approved, the acquisition of Manchester Memorial and Rockville General would further expand Hartford HealthCare’s footprint.

The system currently operates seven hospitals statewide, the most of any health network in Connecticut, and reported roughly $6 billion in revenue in 2023. By comparison, Yale New Haven Health earned $6.4 billion but owns only four hospitals.

The announcement marks the latest ownership development for Prospect’s three Connecticut hospitals — Manchester Memorial, Rockville General, and Waterbury Hospital.

Meanwhile, the state is working to acquire Waterbury Hospital as part of a broader plan to strengthen UConn Health’s position among academic medical institutions. Connecticut is also in discussions to purchase Day Kimball Hospital in Putnam and Bristol Hospital to further expand its healthcare network.

State officials have proposed borrowing $390 million to support the UConn Health expansion, primarily for capital improvement projects and the acquisition of Waterbury Hospital.

Earlier this month, the University of Connecticut’s Board of Trustees and the UConn Health Board of Directors approved a $13 million bid for Waterbury Hospital, though the offer had not been formally submitted as of October 20.

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