Press Releases
05/15/2024
Statements from the Office of Health Strategy and the Department of Public Health on the Yale New Haven Health Lawsuit Against Prospect Medical Holdings
May 3, 2024
Statement from CT Office of Health Strategy
The Office of Health Strategy (OHS) has learned that Yale New Haven Health Services (YNHHS) has filed a lawsuit against Prospect CT relating to their Asset Purchase Agreement (APA).
OHS initially offered an approval of the deal and the terms of an agreed settlement to YNHHS and Prospect CT on October 20, 2023, YNHHS and Prospect CT have been engaged in protracted private negotiations over the original terms of the sale since at least the Fall of 2023. OHS has not received any information as to the current status of their negotiations. However, the lawsuit has no impact on the validity of the Certificate of Need (CON). Should the parties eventually reach agreement, the signed Agreed Settlement requires that if the original APA is no longer in effect at the time of closing or has been renegotiated, YNHHS/Prospect CT must submit the new terms to OHS. OHS will promptly review at that time and will continue to focus on ensuring that quality, access, equity, and affordability are addressed consistent with OHS’s statutory mandate, and that the approved transactions are in the best interests of the residents of Connecticut.
Statement from CT Department of Public Health
The Connecticut Department of Public Health’s (DPH) regulatory authority focuses on ensuring that hospitals comply with state and federal healthcare quality and safety laws and regulations, largely focused on the conditions of participation for Medicare and Medicaid. DPH’s Facility Licensing and Investigation team regularly conducts unannounced surveys at hospitals, including surveys to review complaints and adverse events. As part of the survey process, DPH often reviews additional cases as part of an on-site visit. During the recent cyber security event at the Prospect hospitals, DPH conducted extra monitoring visits to ensure that the Prospect hospitals continued to provide safe and appropriate patient care through the disruption. As violations were identified, DPH issued the Prospect hospitals submitted to DPH plans of correction that Prospect has had to and must continue to comply with. Ensuring that safe and quality care is provided to the communities served by the Prospect hospitals continues to be a priority for DPH.
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Media Contacts:
Tina Kumar-Hyde
Director of Communications, Connecticut Office of Health Strategy
Tina.Hyde@ct.gov
860.969.7228 (Cell)
Chris Boyle
Director of Communications, Connecticut Department of Public Health
860.706.9654 (Cell)