Olha Yarynich, Contributing Photographer

Three Connecticut hospitals owned by Prospect Medical Holdings will remain open and operational despite the owner’s bankruptcy filing, state officials promised on Monday.   

In a press conference, Governor Ned Lamont, Attorney General William Tong and other state and local leaders addressed concerns regarding Prospect’s Chapter 11 bankruptcy filing. While officials reassured the public that the Connecticut hospitals remain open, they highlighted the need for increased oversight and a fresh start under new ownership. 

The new owner may become the Yale New Haven Health system, which Lamont noted remains a leading contender in a potential bid process to acquire the hospitals. Local leaders and healthcare workers underscored the vital role these hospitals play in their communities and advocated for solutions that prioritize patient care and community well-being.

“These hospitals will continue and thrive going forward,” Lamont said. “We’re doing everything we can to make sure Prospect continues to pay the vendors, pay the doctors, pay the nurses, and ensure they keep going.”

Prospect’s bankruptcy filing also comes after months of legal battles with state governments, including Connecticut, Pennsylvania and Rhode Island, over allegations of financial mismanagement and underinvestment in their hospital systems. 

Lamont framed the bankruptcy filing as an opportunity for the three hospitals to get a fresh start. He believes the hospitals are financially viable despite Prospect’s mismanagement and reassured residents that the bankruptcy filing is part of a broader restructuring process and does not signal closures or diminished quality of care.

“These hospitals are very successful,” Lamont said. “They have strong operating cash flow, and the lights are on. This isn’t the end—it’s a fresh start for these hospitals.”

Lamont acknowledged that past efforts to secure a deal between Prospect Medical Holdings and Yale New Haven Health had fallen through, but he expressed optimism about finding a resolution. YNHH has previously sued Prospect over the deal, asserting that the company’s alleged mismanagement violated prior agreements and maintaining that the original deal conditions do not satisfy them. 

At the press conference, the governor also noted that other potential buyers are interested in Prospect hospitals.

Tong reiterated the state’s commitment to holding Prospect accountable for its financial practices, which he said undermined the stability of the hospitals, and stated that legal action against Prospect remains on the table if it serves the best interests of patients.

He cited examples of neglect, including unpaid vendors, a $500 million dividend payout to Prospect leadership and owners, and a data breach affecting over 212,000 Connecticut residents.

“What happened here is we were told things by Prospect and by their investors that ended up not being true,” Tong said, raising concerns about private equity’s role in healthcare. “This is about life and death. We cannot allow financial engineering to jeopardize the health and safety of our communities.”

He stressed that while financial innovation has its place, it should never come at the expense of patient care and called for broader legislative oversight. 

Dr. Manisha Juthani, commissioner of the Department of Public Health, emphasized that her department’s regulatory authority remains unchanged by the bankruptcy filing, detailing ongoing inspections and plans to increase monitoring at the three hospitals to ensure patient safety.

Hospital leadership expressed optimism about overcoming these challenges. 

Deborah Weymouth, CEO of Connecticut Operations for Prospect Medical Holdings, described the bankruptcy as a chance to rebuild and improve operations.

“This Chapter 11 filing is not an end but a new beginning,” Weymouth said. “Our local team is prepared and ready to handle any emergency, and they have already stepped up to the plate to address this one.”

Community leaders echoed the importance of the hospitals to their regions.

Paul Pernerewski Jr., mayor of Waterbury, stressed the need to stabilize Waterbury Hospital, which is “a vital lifeline for health care access” in the region. Jay Moran, the mayor of Manchester, also underscored Manchester Memorial Hospital’s value to the community.

“Local hospitals save lives,” Moran said. “We can’t afford to lose them — they’re essential to our communities.”

The three Prospect hospitals serve nearly half a million people in their coverage areas and employ thousands locally.

JANICE HUR
Janice Hur covers the Yale New Haven Hospital for the SciTech desk. From Seoul, Korea, she is a sophomore in Morse majoring in Biomedical Engineering.