Healthcare DIVE May 8, 2024
Prospect argues the lawsuit is an “11th hour attempt” to back out of the deal.
Dive Brief:
- Yale New Haven Health is suing Prospect Medical Holdings to get out of its agreement to buy three Prospect hospitals in Connecticut, arguing the company violated the terms of their contract and left the facilities in “dire” financial condition.
- In 2022, Yale signed an agreement to acquire Waterbury Hospital, Manchester Memorial Hospital, Rockville General Hospital and their related operations for $435 million, according to the lawsuit, filed in Superior Court for the Judicial District of Hartford last week.
- But since the deal was signed, Yale alleged that Prospect subjected the hospitals to “irresponsible financial practices, severe neglect and general mismanagement.” The nonprofit...
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