Home Care In Waterbury, CT

UConn Health is preparing to submit a bid for Waterbury Hospital as part of the Prospect Medical Holdings bankruptcy sale, and is also in discussions for a partnership with Day Kimball and Bristol hospitals, a push that could create a new public health care system for Connecticut.

The Waterbury expansion would more than double the inpatient capacity of UConn's John Dempsey Hospital in Farmington, to more than 600 licensed beds from Dempsey's current 257. But as UConn Health's board chairman explained it to me, the acquisition — if the state medical center wins the bid — is not just about adding size.

"Our objective is to create a Connecticut healthcare system powered by UConn, where we partner with a number of hospitals," UConn Health Chair John Driscoll told me. "We’d like to create a third alternative that is lower cost and as high quality."

More For You

A third alternative, that is, to the two large statewide systems: Hartford HealthCare and Yale New Haven Health. It's a risk but if they can pull it off, that could help stabilize rising hospital prices in Connecticut.

Driscoll declined to offer details about any talks for mergers or partnerships with other hospitals. UConn Health said only that it is "in discussions" with both Day Kimball, which is based in Putnam, and Bristol — two of the small handful of remaining independent critical care hospitals left in Connecticut.

It's unclear whether UConn would acquire those hospitals, create clinical partnerships or ink some other arrangements.

Waterbury is one of three Connecticut hospitals on the block as part of the bankruptcy of Prospect Medical, a private, for-profit chain that owns it and two others, Rockville General and Manchester Memorial, which are significantly smaller.

UConn Health is not bidding on Rockville or Manchester, Driscoll told me. The chance to buy Waterbury Hospital sped up the academic medical center's plans for expansion.

"We see Waterbury as a foundational step as we set up a Connecticut hospital system," Driscoll said. "Waterbury fits in that plan. The others do not."

Why a state health care system?

Under the bid, the state would forgive all or part of the roughly $130 million in back taxes Waterbury owes the state, Driscoll said. The state would take on $300 million in debt for Waterbury, and would need an additional subsidy from the state budget of about $25 million a year for a few years.

That's on top of an ongoing annual state subsidy for UConn's John Dempsey Hospital, which has generally been declining. The shortfall in this fiscal year is expected to be less than $60 million on revenues of $1.15 billion, Driscoll said.

The new system would be called the "Connecticut Healthcare System, powered by UConn Health."

UConn Health, Hartford HealthCare and New York-based Northwell Health, which bought Nuvance earlier this year, have all explored bidding on one or more of the three Prospect Medical hospitals in Connecticut, my colleague Liese Klein reported last week, citing sources. A for-profit company, with close ties to the landlord of the Prospect hospitals, won a Prospect bankruptcy bid in California and could also bid in Connecticut, Klein reported.

All of those systems have declined to comment about their plans.

With plenty of interest, critics may ask, why should taxpayers support the creation of a public health care system built around UConn Health, which already requires a subsidy? The answer is that in the vision of Driscoll and UConn Health CEO Dr. Andrew Agwunobi, this will not be your grandparents' UConn hospital system.

"We’re not going to be as big as Hartford or have the storied brand of Yale but we think we can create a three- to four-hospital system that creates more choices at a lower cost," Driscoll said, "for patients in Connecticut."

UConn Health also includes the university's medical and dental schools with many research labs. The board is expected to authorize the Waterbury bid this week.

Hospitals in the UConn-centered system would remain separate, if not independent, and would share clinical services, Driscoll explained. Key to the strategy: Expanding primary care to fill a chronic shortage.

'A perfect example of what can go wrong'

All of this is part of a long-term plan that came out of a study produced in 2024 that showed UConn's Dempsey Hospital must have more capacity if it wants to break even. Driscoll, a business-side, non-physician executive with long experience turning around and merging health care companies, joined the UConn Health board as its chairman at the start of this year and immediately went to work enacting the plan.

The Waterbury Hospital purchase would not lead to staffing cuts as often happens in a merger, Driscoll said. “We think that Waterbury is underinvested and understaffed,” he said. For example, Dempsey has 18 operating rooms, which are so fully booked that the hospital turns away patients for some non-emergency procedures, while Waterbury's 18 operating rooms are underutilized.

The plan has the support of Gov. Ned Lamont and other key leaders, Driscoll said, with a caveat. The deal must get the hospital out from under a landlord arrangement that Prospect created, which led to the bankruptcy. As it stands now, a company separate from Prospect owns the land and buildings and charges Prospect rent.

"The governor is very clear that any state-sponsored bid is not going to pay the people who took the money in the first place. So our bid will be pretty clear on that," Driscoll told me.

It's not clear how that would be worked out with the landowner, Medical Properties Trust, but bankruptcy courts — part of the federal court system — have huge leeway in how they structure deals.

"The history of out-of-state investors taking over troubled hospitals has been one where the hospitals stay in trouble and the states lose even more money," Driscoll said. "It’s not been a pretty history."

He added, "The hollowed out Waterbury Hospital is a perfect example of what can go wrong and I don’t see any reason why the state should try that experiment again."

Digging out of the state subsidy

Helping the UConn bid against potential offers from Hartford HealthCare or Northwell: The state can "clean up the back taxes," Driscoll said, presumably by forgiving some or all of the bill.

The purchase out of bankruptcy might need bonding approval and would need added support in the annual state budget for a few years. But Driscoll said he's confident the Connecticut Healthcare System can eventually become profitable and not need a state subsidy. Evidence of that: John Dempsey Hospital needed a 25 percent subsidy when it had $500 million in patient revenues. Now, more than double that size, it needs less than an 8 percent state backstop.

Meanwhile, the hospital has racked up some major industry awards for the quality of its care.

Driscoll told me in an interview earlier this year that Dempsey is succeeding in squeezing higher payments out of insurance companies, which pay the state-owned hospital far less than they pay average hospital in Connecticut. A standoff against ConnectiCare ended well for UConn Health, he said.

If that payment gap goes away, he said, the subsidy won't be needed.

"Hopefully we win. I believe we will," he said of the bankruptcy bid. "And that will start us down the path of offering more choices and more options and also a better option for the citizens of Waterbury and for Connecticut."

[email protected]

State officials and hospital leaders are in high-level discussions concerning the purchase of Bristol, Day Kimball and Waterbury Hospitals by the state-owned University of Connecticut Health Center, according to multiple sources with knowledge of the conversations.

Officials are considering a total for the deal that could reach nearly $400 million, sources said.

On Monday, members of Gov. Ned Lamont’s administration and leadership from the University of Connecticut met with lawmakers to discuss the deal, according to several people. State Comptroller Sean Scanlon and Lamont’s chief of staff Matthew Brokman were among those in attendance, as well as UConn Health CEO Andrew Agwunobi and UConn Health Board Chair John Driscoll.

Rob Blanchard, Lamont’s spokesperson, said in a statement, “Although discussions are ongoing, it’s premature to discuss final bids or plans around those partnerships.” He added that the governor wants to support UConn Health’s academic and research programs, while ensuring its sustainability.

Representatives for UConn Health could not be immediately reached for comment. Leadership with Bristol and Day Kimball Hospitals deferred to UConn Health for comment. A representative for Waterbury Hospital didn’t provide comment in time for publication Monday.

UConn Health Center, which houses UConn’s medical and dental schools as well as John Dempsey Hospital, has been struggling financially for years, though much of that problem involves fringe benefit and wage costs — driven largely by state government and not by the university itself.

The health center receives about 13% of its funding from the state budget. The bulk of the rest comes from revenue generated by John Dempsey Hospital.

A report released last year, commissioned by the governor and completed by investment banking firm Cain Brothers, found that the health center had too small of a footprint to compete with other academic medical centers in the current market. The health center generated cash flow losses averaging $140 million per year between 2020 and 2023, the consultants wrote.

The report proposed two solutions: either sell John Dempsey Hospital or engage in a partnership with another health system.

Scanlon said Monday that the potential deal now being considered could bring financial stability to the state health center and benefit the communities surrounding Waterbury, Bristol and Day Kimball Hospitals.

“The potential partnerships that are being explored are about two things: strengthening UConn’s long-term fiscal health and making sure that different communities in Connecticut have access to public health and health care,” Scanlon said.

Waterbury Hospital is one of three facilities in Connecticut owned by bankrupt hospital operator Prospect Medical Holdings. The formerly private equity-backed Prospect, which also owned hospitals in Pennsylvania, Rhode Island and California, filed for Chapter 11 bankruptcy in January.

Prospect’s Connecticut hospitals — Waterbury, Rockville General and Manchester Memorial — have faced longstanding financial and operational problems, including a cyberattack in August 2023.

“There needed to be a public health solution,” Scanlon said in reference to Waterbury Hospital. “And that is what this is.” (Rockville General and Manchester Memorial aren’t part of the proposed acquisition by UConn Health.)

As part of the proposed deal, the state would not only have to purchase Waterbury Hospital but also the land, buildings and equipment from a real estate investment trust, sources said. Prospect acquired Waterbury Hospital in 2016 and then sold those assets to the REIT in 2018.

Connecticut claims Prospect owes it more than $67 million in health provider taxes, also known as hospital user fees, which hospitals, nursing homes and other health care providers must pay to the state every year based on their revenues. It has filed a claim in Prospect’s bankruptcy proceeding to recoup the money. Sources said the tax issue is not part of the proposed hospital deal.

On Monday, House Speaker Matt Ritter, D-Hartford, confirmed the nature of the discussions and said the state is considering borrowing money — bonding — to pay for the hospitals. The state’s goal, Ritter said, is to prevent the hospitals from being acquired by private equity interests.

Ritter added that he had “specific concerns” about how the state would pay for the hospitals. “UConn Health is not in a position to be taking on more debt so my question is, ‘Who is going to pay for it?’” Ritter said.

But he indicated he wasn’t opposed to using bonded funds to make the acquisition. “I think if we feel that it’s important to have strong hospitals and to keep these hospitals from being purchased by another private equity company then it’s fine for the state to bond it,” Ritter said.

Ritter said the other issue is whether the state would have to exceed its constitutional spending cap to make the purchases. He also said that question may need to be put to lawmakers in a special session.

The deal would need to be approved by the University of Connecticut’s Board of Trustees, which holds its next regular meeting on Wednesday. A source said the possible deal will be discussed at that meeting.

Bristol Hospital and Day Kimball, located in Putnam, are two independently owned community hospitals that have also historically struggled financially. In recent years, both have received state funding to help shore up their operations.

Katy Golvala is CT Mirror's health reporter. Originally from New Jersey, Katy earned a bachelor’s degree in English and Mathematics from Williams College and received a master’s degree in Business and Economic Journalism from the Columbia Graduate School of Journalism in August 2021. Her work experience includes roles as a Business Analyst at A.T. Kearney, a Reporter and Researcher at Investment Wires, and a Reporter at Inframation, covering infrastructure in Latin America and the Caribbean.

More by Katy Golvala

Firefighters at Fire Station 1 have been deployed to stations throughout the city while the firehouse undergoes a $5.7 million renovation.

The firehouse at 1979 North Main St. closed two weeks ago as part of the department's ongoing plan to renovate its eight firehouses to bolster operations and service capabilities while ensuring long-term readiness, fire officials said.

As the city renovates one station, it will move on to the next. Each project is expected to cost several million dollars.

Mayor Paul Pernerewski described the firehouse conditions across the city as appalling. "They all need renovation," he said. "They're old and horribly run down and in need of upgrades."

Personnel, apparatus, and resources from Fire Station 1 will be "strategically redeployed" to other stations throughout the city to maintain full emergency response coverage for all residents and businesses during the closure, fire officials said in a news release.

"The department has worked closely with city officials to ensure that public safety remains unaffected during this transition," officials said in the release.

Fire Chief Javier Lopez said all available manpower will be assigned to the closest stations on Walnut Avenue and Willow Street. Also, instead of dispatching by geography, responding crews will be dispatched by GPS. If a crew is returning from a call or a training and are near a reported fire, they will be dispatched first.

Fire Station 1 is expected to reopen in June 2026 following upgrades that will modernize the station, upgrade sleeping and cooking quarters and provide a safer, more efficient working environment for city firefighters, officials said.

The city has completed work on Fire Station 6 on Willow Street, which needed significant upgrades to its rickety wooden stairs and failing railings. Asbestos inside the walls needed to be removed and the floor, built in 1907, was replaced with a much stronger structure, officials said.

"The floor that held the truck was not made for a 38,000-pound fire engine," said fire department spokesman Capt. Edward Partridge. "When you can't hold the fire truck from falling into the basement, that's a problem."

Fire Station 7 on Walnut Street was in the most need of work and had not had significant upgrades since construction. Asbestos was found in all the walls, plumbing and electrical also had to be brought to code, Partridge said. The cost to complete the work was $2.7 million, Partridge said.

After completion of Station 1, the city is expected to begin small renovations at the kitchens in Station 4 and 6, he said.

Not all the stations will be improved but "most of them need some work," Partridge said.

The renovation is a top priority for new chief Lopez who took over the helm of the department in June. The city has 230 firefighters, and responds to about 22,000 calls annually.

The city is also searching for space in the East End to build a new station for coverage in that area, but officials had no further details. A previous plan to expand Fire Station 5 on East Main Street fell through, the mayor said.

Pernerewski said the firehouse improvement project sends a message to firefighting staff that the city values them.

"If you're putting people in second-rate or third-rate or fourth-rate living quarters, I think there is a subtle message there that says you're not a priority for us, and I don't think that's true," Pernerewski said.

© 2025 Journal Inquirer, Manchester, Conn.. Visit www.journalinquirer.com. Distributed by Tribune Content Agency, LLC.

WATERTOWN — Voters on Tuesday easily approved a $30 million bond to pay off the town’s legal debt to neighboring Waterbury, avoiding what officials warned could have been a financial crisis marked by skyrocketing interest, emergency borrowing, or even bankruptcy.

The referendum passed by a vote of 2,060 to 823. The bond will be repaid over 20 years through usage-based surcharges on Water and Sewer Authority (WSA) customers — not through general property taxes. The average household will pay about $300 more per year, officials say, with higher charges for businesses and institutions.

The town had faced a 26 percent annual interest rate on the judgment, the result of statutory and post-judgment penalties. With the bond now approved, Watertown can refinance the debt at market rates around 4.25 percent percent, reducing the long-term cost.

The judgment stems from more than a decade of underpayments for sewer and water services. Waterbury sued in 2018, and in 2023 a Superior Court ruled that Watertown owed over $18 million. After losing appeals at both the Appellate and Connecticut Supreme Courts, interest brought the total close to $30 million.

Officials said the bond provides a path to repay that debt in full while minimizing the impact on taxpayers.

Roughly $24 million of the bond will be repaid by WSA users, with the remaining $6 million expected to come from the Watertown Fire District. But that agreement is not yet finalized and could impact how the financial burden is shared.

A separate $10 million road repair bond also passed.

A September pre-referendum public meeting drew frustration and emotion. Resident Debra Boutote tearfully said she planned to vote “no,” adding: “Don’t take it away from me because you made a mistake and didn’t pay the bill.”

Others supported the bond as a necessary fix, even if reluctantly. Town Manager Mark Raimo said the referendum was “not just a WSA problem. This is a Watertown problem.”

Resident Francis Popilowski said she was “disgusted” by what had transpired in her hometown and called for the town to give residents more time to decide. That request went unanswered, and the vote proceeded as scheduled.

Despite approval, town officials must now finalize financing, work out a contribution agreement with the Fire District, and perhaps begin restoring public trust after months of tension and confusion.

WATERTOWN, CT (WFSB) - Voters in Watertown headed to the polls Tuesday to decide how the town should repay more than $30 million in unpaid water and sewer fees owed to the City of Waterbury.

The town’s registrars said that the referendum passed by about 70%.

The town estimates that the average family that uses 50,000 gallons of water will see about a $300 increase per year in their water and sewer bills.

“I know in my neighborhood they want to get it over with but I don’t think that way,” said Dawn Rourk.

“I’m on the fence about whether it’s good or bad,” said Daniel Gough.

The debt stemmed from a years-long legal dispute between the two municipalities.

In 2018, Waterbury increased its water and sewer rates for customers outside the city, including Watertown.

Rather than accept the new rates, Watertown officials challenged the increase in court and continued paying the lower, previous rates.

A judge ultimately sided with Waterbury, and now Watertown must pay back the difference, a total that reached $34 million.

Tuesday’s vote aimed to determine whether or not residents were willing to pay higher water and sewer rates to cover the debt.

“First of all we shouldn’t be in this position to begin with,” continued Rourk.

About 2,900 residents voted at four polling locations across town. More than 2,000 voted yes to the referendum.

“Way too much. Way too much. I mean it’s expensive enough to survive here and one more increase isn’t going to help anyone,” said Rourk.

Channel 3 reached out to the town manager for comment and an exact timeline on when bills will go up but did not hear back.

Stay with Channel 3 Eyewitness News for updates and election results.