Yale New Haven Health signs agreement to acquire Connecticut Health Systems from Prospect Medical Holdings
Change of ownership to not-for-profit to increase access to care and health equity
Yale New Haven Health and Prospect Medical Holdings, Inc. recently announced the signing of an agreement for YNHHS to acquire two Connecticut health systems from Prospect. The agreement is subject to customary regulatory approvals, with both organizations aiming to complete the transaction later this year.
Under the letter of intent, YNHHS would purchase the assets and operations associated with these hospitals that make up the health systems:
- Waterbury Hospital (AKA Waterbury HEALTH), with 357 certified beds
- Manchester Memorial Hospital (AKA ECHN) in Manchester, with 249 certified beds
- Rockville General Hospital in Vernon, with 102 certified beds
The agreement also includes the health systems’ related businesses, real estate assets, physician clinic operations and outpatient services.
ECHN and Waterbury HEALTH, with approximately 2,900 employees, would return to not-for-profit status, providing continued access to care at their campuses and outpatient locations.
“As we begin to emerge from an international pandemic that has devastated many hospitals across this nation, it is critical that we think creatively about sustaining local access to high-quality care,” said Marna P. Borgstrom, YNHHS CEO. “Innovation has become a watchword for a post-pandemic healthcare environment, and we are all exploring clear opportunities to enhance access to high-quality care while driving down costs. While this is at a very early stage, our goal is to sustain critical access to vital healthcare services directly in these local communities.”
“We are excited about the opportunity to join YNHHS. We are proud of our accomplishments and appreciate the significant investments made by Prospect to increase quality, preserve jobs and respond to the pandemic,” said Deborah Weymouth, ECHN CEO.
“Waterbury is deeply committed to caring for our communities and adapting to the rapidly evolving healthcare landscape,” said Justin Lundbye, MD, Waterbury HEALTH president and CEO. “Along with ECHN, we are proud of what we’ve accomplished, including investing millions of dollars in our communities, preserving jobs, increasing quality ratings and being leaders in Connecticut’s response to the pandemic. We are confident YNHHS will continue this legacy.”
Under the proposal, the three Connecticut-based hospitals would become affiliated with YNHHS, similar in nature to Greenwich and Bridgeport hospitals and Lawrence + Memorial Health. As part of YNHHS, Waterbury HEALTH and ECHN will be able to enhance delivery of care across a wide spectrum of primary and specialty services.
“Working with our partners at Yale School of Medicine, we believe this could create a seamless and integrated delivery system that would serve the best interests of our patients in the most cost-effective manner possible throughout Connecticut and the entire region,” noted Christopher O’Connor, YNHHS president.
As due diligence is completed and the organizations move toward a definitive agreement, Yale New Haven Health is focused on preserving jobs in the local communities, supporting employee pensions, and assessing these facilities’ future capital needs.
“This relationship makes sense from a patient care perspective,” said Keith Churchwell, MD, Yale New Haven Hospital president. “We believe patients will benefit directly from the affiliation of these exceptional health systems with a Connecticut-based academic health system like Yale New Haven.”
