Yale New Haven Health agreed two years ago to acquire three financially-troubled hospitals in Connecticut.
Now the deal is on unsteady footing in the wake of a six-week long cyberattack against the hospitals, with YNHH requesting to pay a lower price and receive financial support from the state.
The attack targeted Manchester Memorial, Rockville General and Waterbury Health Hospitals — the medical centers that YNHH is poised to acquire, which are currently owned by the Los Angeles-based company Prospect Medical Holdings.
YNHH proposed a flurry of changes to the acquisition deal in an attempt to address the hospitals’ financial issues, many of which were exacerbated by the cyberattack. Under its “Recovery Plan,” YNHH would provide management services to all three hospitals to aid their recovery from the cyberattacks.
In the meantime, according to YNHH’s plan, Prospect Medical Holdings would decrease the purchase price of the three hospitals — originally $435 million — and Connecticut’s state government would lend financial support for the deal. With the acquisition, YNHH would gain over 700 new beds and add about 4,400 additional employees, for a total of 33,400. The for-profit Prospect hospitals would also be reverted to non-profit status. Read more.
