Fewer patients are being admitted to all three Connecticut hospitals owned by bankrupt operator Prospect Medical Holdings and fewer babies are being born at Waterbury Hospital this year, according to a new report.
Patient advocate Suzanne Koenig filed her latest report on Waterbury, Manchester Memorial and Rockville General hospitals on Tuesday in a North Texas federal court as part of Prospect’s ongoing bankruptcy case.
“Generally, there has been low census across the debtors’ Connecticut hospitals,” Koenig said in the report, referring to the number of admitted patients.
Waterbury Hospital’s birthing unit was delivering between 80 and 90 babies a month as of this summer, down from more than 100 a month in prior years, according to the report.
“Birth volume has dropped significantly at Waterbury compared to last year due to the loss of certain physician groups,” Koenig said. Later in the report, she quoted a veteran nurse at Waterbury Hospital blaming the decline in births on the loss of two physician groups, teams of doctors who are contracted to deliver babies at a certain hospital.
Fewer patients in general have also led to the recent closing of a unit at Manchester Memorial Hospital, according to the report. The hospital’s 1 East unit was temporarily closed as of June due to a drop in patient numbers.
Koenig’s report, which covers patient care for the period from May 31 through July 29, also highlighted ongoing efforts by the three hospitals to retain and hire staff amid the parent company’s financial strain.
Manchester and Waterbury hospitals have hired new nurses and mostly eliminated staffing shortages that impacted patient care, Koenig said.
“Waterbury continues to have RNs call out sick or no-show, but to a much lesser degree than reported previously,” Koenig said. More Waterbury nurses have also resigned since her last report, she added.
Nurses and other staff have cited uncertainty about the hospitals’ future in contributing to staffing challenges.
Delays in selling Prospect’s Connecticut and California hospitals are contributing to a deteriorating financial situation at the company and an urgent need for emergency financing, a lawyer for the company said at a hearing earlier this month. The Texas bankruptcy judge approved a new $30 million loan, with the expectation that Prospect may need $55 million more next month to keep operating through the summer.
Prospect’s financial woes are unlikely to be helped by a new development last week in its ongoing lawsuit against Yale New Haven Health, which scuttled a bid to buy the Connecticut hospitals last year amid allegations of mismanagement.
At stake is the $435 million that Yale New Haven Health agreed to pay Prospect for its three Connecticut hospitals in 2022, before scotching the deal in 2024. Prospect had argued that the soured deal was pivotal to its decision to file for bankruptcy and a favorable outcome in the lawsuit could enable it to pay some of its debts, estimated to be as high as $10 billion.
A Connecticut federal judge ruled last week that the lawsuit should stay in state courts, rather than be moved to bankruptcy court. He stated that the court action concerned events not directly related to the bankruptcy and keeping the case in the state courts would speed a resolution.
“This case is a contract dispute and concerns whether the terms of the contract were or were not honored,” Judge Michael P. Shea wrote in his ruling. “I find that the Connecticut Superior Court is comparatively better suited to address this case.”
“Yale New Haven Health is pleased with the Federal Court’s decision to keep our case against Prospect in Connecticut Superior Court as Prospect’s multiple breaches of its obligations is of great concern to thousands of Connecticut residents,” spokesperson Dana Marnane said in a statement. “Prospect’s mismanagement of its facilities has been well documented.”
Prospect did not respond to requests for comment.
Prospect also filed a new document this week seeking to legally “abandon” two of its shuttered hospitals in Pennsylvania, Delaware County Memorial and Taylor Hospital. The for-profit company had once operated four hospitals in the state, but closed two prior to its bankruptcy filing in January, then closed the remaining two in April.
Prospect said in the filing it has been trying to sell the two hospitals, but the low bids received came nowhere near covering the cost of property taxes and maintenance.
“The debtors believe that it is necessary, appropriate, and in the best interests of their estates to seek approval of a safe and expeditious process for abandoning the burdensome real property,” Prospect argued in its emergency motion. If the judge approves the abandonment, a lender can move to foreclose on the properties.
A hearing on the fate of Prospect’s Pennsylvania hospitals is scheduled for Aug. 4.