In CT, Prospect owns Waterbury Hospital and the Eastern Connecticut Health Network, which includes two hospitals in Manchester and Vernon. All three remain open.
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CONNECTICUT, USA — Prospect Medical Holdings, Inc., which owns three Connecticut hospitals, announced Saturday night that it is filing for bankruptcy.
In Connecticut, the Los Angeles-based company owns Waterbury Hospital and the Eastern Connecticut Health Network, or ECHN, which includes Manchester Memorial Hospital and Rockville General Hospital. All three remain open.
In a statement, the company said that it is realigning its "organizational focus outside of California," which includes an agreement to sell Roger Williams Medical Center and Our Lady of Fatima Medical Center, both located in Rhode Island. It is also working with the state of Pennsylvania for a divestiture of the Crozer-Chester Medical Center.
"To effectuate the paths forward and the Hospital Transactions in an expected timeframe, and to ensure continued provision of critical and tailored healthcare, Prospect Holdings, together with certain of its subsidiaries, initiated voluntary chapter 11 proceedings in the United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy Court”)," the company said in the statement.
The company added that Prospect Holdings' "hospitals, medical centers and physicians' offices will remain open" through the Chapter 11 process, and that "patient care and services will continue uninterrupted."
Gov. Ned Lamont said in a statement that his administration has been "preparing for the possibility that Prospect Medical Holdings would file for Chapter 11 bankruptcy."
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"The three hospitals remain open, and we will continue to hold Prospect accountable to provide quality care to the communities that rely on these institutions," Lamont said. “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. As part of this response, we are in touch with management at these local hospitals, representatives for hospital staff, and local elected officials."
He continued, “Our number one priority remains maintaining safety and quality of care at Prospect’s three Connecticut hospitals. We currently have an independent monitor overseeing operations at Waterbury Hospital and will increase oversight at Manchester Hospital. We will continue to work to evaluate opportunities to transfer these institutions to a new operator. The state will be monitoring the situation closely and intends to participate in court proceedings to the extent necessary to protect the interests of patients, employees and creditors.”
Lamont said Monday that the next steps in the process involve "another bid process or a new vendor. We had three bid last time and Yale is obviously the one we've tried to get over the finish line for a couple years and they are at the front of the pack."
State Sen. Saud Anwar, the senate chair of the Public Health Committee, noted that the bankruptcy declaration is "both disturbing and deeply disappointing."
"It sends ripples of uncertainty through the three hospitals affected, as well as the communities and families who rely on these institutions. I am working to determine how this will impact our state and am adamant that care cannot be compromised now more than ever. State leadership including Governor Ned Lamont, Attorney General William Tong and my fellow state legislators is deeply engaged in this issue and in close contact with Prospect Medical Holdings' leadership to address this situation with urgency and clarity," Anwar said.
He continued, "Our top priority is—and always will be—our patients and healthcare workers. These are the people at the heart of our healthcare system, and they deserve our unwavering support. We are committed to doing whatever it takes to ensure continuity of care, safeguard jobs, and maintain the quality and accessibility of healthcare in the communities served by these hospitals."
State Sen. Jeff Gordon said he plans to move forward with his own bill this legislative session to put people before profits and prevent groups like Prospect from running hospitals.
“I want to reassure people, when they need care, go to the emergency room if you feel you have to, if you need local healthcare still do that,” Gordon said. “But we need to see what we can do to really get this away from Prospect, keep these hospitals in ECHN open and running and providing services, and providing the jobs and the paychecks to employees, and then see what we can do moving forward…We need to deal with saving the systems now, and then prevent this from happening to any other system in the future.”
State Sen. Joan Hartley said in a statement, "This is a deeply troubling and heartbreaking development for Waterbury and the greater Waterbury area, especially for the hardworking staff and their patients. I want to reassure our community that patient care remains a top priority and the hospital is committed to continuing to provide high-quality services. While the full impact of this development is not yet clear, I will work closely with the Mayor, Waterbury Delegation, and all stakeholders to ensure that our residents continue to receive the excellent care they deserve. Waterbury’s resilience will guide us through these challenging times.”
Attorney General William Tong said that while he is disappointed that the company filed for bankruptcy, "this changes nothing with regards to their obligations to patient care and safety."
"My office is watching this matter closely and I intend to actively participate in the proceeding to protect the interests of the state, Prospect’s patients, employees, and the communities that rely on its services," Tong said.
In a press conference Monday, he listed off a number of issues regarding Prospect, including that "they failed to pay vendors" and that they "engaged in a pattern of neglect and disinvestment."
Vernon Mayor Dan Champagne said in a statement that the bankruptcy declaration is "not unexpected."
“We have been following developments at ECHN and Prospect closely and have known for some time that they were behind in paying suppliers, doctors and others, both locally and across the nation. I have been in touch with the governor’s office and we will continue to work with him and others," Champagne said. "The key thing for our communities to know is that Eastern Connecticut Health Network will continue to care for patients and provide the medical care our communities have come to rely on. Patient care is still No. 1 for ECHN.”
Some nurses like Ann-Marie Cerra say concern is already starting to surface at Manchester Memorial Hospital.
“We all feel very vulnerable, no one wants to have to start over you know after so many years, there’s some frustration and there is some anger about the process and corporate greed," Cerra said.
Sean Humphrey is a digital content producer at FOX61 News. He can be reached at [email protected].
Steffen Reals is a reporter and anchor at FOX61 News. He can be reached at [email protected]. Follow him on Facebook, X, and Instagram.
Kaye Paddyfote is a multimedia journalist for FOX61 News. She can be reached at [email protected]. Follow her on X, Facebook and Instagram.
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