Negotiations between Yale New Haven Health System and Prospect Medical Holdings have reached a stalemate.
In 2022, Yale New Haven agreed to pay $435 million for Waterbury, Manchester Memorial and Rockville General hospitals.
But a cyberattack on California-based Prospect Medical Holdings, who owns the hospitals, has led to a dire financial situation. That’s what hospital executives told legislators in September.
Now, Yale New Haven wants to renegotiate, and is asking the state to kick in $80 million.
Representatives from Yale New Haven told legislators the money would be used to update computer systems and address “deteriorating” conditions.
Gov. Ned Lamont said he is not interested in providing that aid.
“This is an agreement between Yale New Haven and Prospect,” Lamont said. “I don't know why they need the taxpayers to step in. But we'll be talking.”
In a statement, OHS spokesperson Tina Kumar Hyde said the office is not required to keep the deal confidential, but it is preferred. Yale and Prospect declined to do so.
“In an attempt to move the transfer-of-ownership process to a resolution, the Office of Health Strategy reached out to the Yale/Prospect [certificate of need] applicants to initiate discussions on an agreed settlement,” Kumar Hyde said.
“As is routine with this type of negotiation, OHS requested that the substance of the negotiations remain confidential while discussions were ongoing," Kumar Hyde continued. "Yale and Prospect have chosen not to agree to confidential negotiations, and therefore, to keep the process moving as expeditiously as possible, OHS will prepare and issue a Proposed Final Decision on the certificate of need."
Lamont said he expects that decision to be made soon.
“I think they're gonna greenlight this project and they're going to do it soon,” Lamont said.
