Medical Properties Trust, the nation’s largest hospital landlord, said its deal to secure $375 million in new financing from third-party lenders for Prospect Medical Holdings was completed, but the company did not mention that a California state regulator put the transaction on hold, The Wall Street Journal reported Aug. 18.
Prospect said in a filing that a subsidiary of MPT had acquired a 49 percent stake in Prospect’s parent company and that the deal didn’t need the regulator’s advance approval because it wasn’t a change in control. The deal was put on hold July 20 as the state regulator was concerned over how much control MPT would have over Prospect Health Plan, Becker’s reports.
But Medical Properties Trust “didn’t disclose the regulator’s order when it reported second-quarter results, or in its quarterly report with the Securities and Exchange Commission,” according to the Journal. Read more.
