Yale New Haven Health has Signed an Agreement to Acquire Connecticut Health Systems from Prospect Medical Holdings
Change of ownership to not-for-profit to increase access to care and health equity
Yale New Haven Health (YNHHS) and Prospect Medical Holdings, Inc. (Prospect) today announced the execution of definitive agreements for YNHHS to acquire two Connecticut health systems from Prospect. The agreement also includes the health systems’ related businesses, real estate assets, physician clinic operations and outpatient services, and it is subject to customary regulatory approvals. YNHHS has agreed to purchase the assets and operations associated with the following hospitals that make up the health systems:
Waterbury Hospital (AKA Waterbury HEALTH) in Waterbury, CT, with 357 certified beds
Manchester Memorial Hospital (AKA ECHN) in Manchester, CT, with 249 certified beds
Rockville General Hospital in Vernon, CT, with 102 certified beds
Prospect CT Medical Foundation (Alliance Medical Group, ECHN Medical Group, and Cardiology Associates of Greater Waterbury LLC)
ECHN and Waterbury HEALTH, with approximately 4,400 employees, would return to not-for-profit status, providing continued access to care at their campuses and outpatient care locations. The related real estate assets of the hospitals are to be released from the existing master lease agreement between the real estate owner and Prospect at closing.
“Now more than ever, it’s critical for us to find ways to creatively sustain local access to high-quality care,” said Christopher O’Connor, president and CEO of YNHHS. “This transaction offers unique advantages to the residents of the communities served and allow for continued patient access to critical healthcare services while being strengthened by the quality-of-care YNHHS is known for nationally.”
“We are excited about the opportunity to join YNHHS,” said Deborah Weymouth, president and CEO of ECHN. “We are proud of our accomplishments and appreciative of the significant investments made by Prospect to preserve jobs and respond to the needs of the community throughout the pandemic while increasing both quality ratings and improvements to the patient experience.”
“Waterbury Hospital is deeply committed to caring for our communities and adapting to the rapidly evolving healthcare landscape," said Dr. Justin Lundbye, president and CEO of Waterbury HEALTH. "Along with ECHN, we are proud of what we’ve accomplished, including investing millions of dollars in our communities, preserving jobs, increasing quality ratings, and being leaders in Connecticut’s response to the pandemic. We are confident YNHHS will continue this legacy.”
Yale New Haven Health and Prospect are working with the Office of Health Strategy and the Department of Public Health to obtain regulatory approval, including filing a Certificate of Need (CON) with the state this fall. Pending regulatory approval, the three hospitals will become part of the Yale New Haven Health System, similar in nature to Greenwich and Bridgeport Hospitals, as well as Lawrence + Memorial Health. As part of Yale New Haven Health, Waterbury HEALTH and ECHN will be able to enhance delivery of care across a wide spectrum of primary and specialty services.
Yale New Haven Health has a stellar track record with hospital affiliations with its success in preserving and enhancing the delivery of high-quality care locally. Yale New Haven Health is focused on preserving jobs in the local communities, supporting employee pensions, and assessing the future capital needs of these facilities. This is clearly evidenced today in places like New London, Milford and Westerly.
“Working with our partners at the Yale School of Medicine, this will create a seamless and integrated delivery system that will serve the best interests of our patients in the most cost-effective manner possible throughout the state of Connecticut and the entire region,” noted O’Connor.
Yale New Haven Health, the largest and most comprehensive healthcare system in Connecticut, is recognized for advanced clinical care, quality, service, cost effectiveness and commitment to improving the health status of the communities it serves. YNHHS includes five hospitals – Bridgeport, Greenwich, Lawrence + Memorial, Westerly and Yale New Haven hospitals, several specialty networks and Northeast Medical Group, a non-profit medical foundation with several hundred community-based and hospital-employed physicians.
Prospect Medical Holdings, Inc., established in 1996, is a national leader in fully integrated healthcare. We are proud to provision healthcare services for more than 600,000 enrolled members through integrated networks of primary and specialty physicians, in affiliation with hospitals, clinics, other community-based providers and health plans. Prospect owns and operates 17 hospitals and more than 165 clinics and outpatient centers, with primary operations in California, Connecticut, Pennsylvania, Rhode Island and Texas.