Approval Process for YNHH/Prospect Deal Nears 1 Year

The approval process for the sale of three Connecticut hospitals owned by Prospect Medical Holdings to Yale New Haven Health has now surpassed one year, making it longer than several other hospital mergers in the state.

According to records, previous hospital acquisitions in Connecticut have taken significantly less time to be approved. For example, Yale New Haven Health’s purchase of Milford Hospital in 2019 took 204 days, while Hartford HealthCare’s acquisition of Saint Vincent’s Medical Center the same year took 267 days.

As of November 19, the approval process for Yale New Haven Health’s acquisition of the three Prospect hospitals has taken 362 days, causing concern among hospital executives, legislators, and local officials. The Prospect hospitals currently owe over $40 million to vendors, physicians, and in taxes, leading to postponed surgeries and financial strain on healthcare providers.

The prolonged approval process has also put contracts with traveling nurses and technicians at risk, with some agreements now only in place on a “week-to-week” basis. An anesthesiologist group is even suing over nonpayment of more than $3 million. Additionally, a cyberattack over the summer further set back the hospitals financially.

Representative Lezlye Zupkus expressed frustration with the delay, stating that the state has taken too long to approve the deal. Tina Kumar Hyde, a spokeswoman for the Office of Health Strategy, explained that the complexity of the current deal, involving three hospitals, has contributed to the extended timeline.

The uncertainty surrounding the approval of the Prospect-YNHH deal has raised concerns about the future of the hospitals and the quality of healthcare services they provide. Stay tuned for more updates on this developing story.