Despite a report that Prospect Medical Holdings Inc., owner of Manchester Memorial and Rockville General hospitals, is trying to sell its east coast assets, officials at Prospect and local hospitals say the company is simply exploring ways to streamline services and reduce costs.
Prospect acquired the non-profit Eastern Connecticut Health Network, which owns Rockville General Hospital in Vernon and Manchester Memorial Hospital, in 2016.
Axios, an online news source founded by former Politico reporters, reported in December that Prospect was looking to sell its assets on the west and east coasts after buying out the Leonard Green & Partners stake last summer.
Axios cited “sources familiar with the matter,” who said Prospect was seeking buyers for certain assets, including for-profit hospitals in Connecticut, Pennsylvania and New Jersey.
In October, The Philadelphia Inquirer also wrote that Prospect was selling four hospitals in Pennsylvania, again citing anonymous sources.
A later article in the same publication said that Prospect disputed the initial report.
Morgan Stanley’s tax-exempt financial group is selling its assets on the east coast, Axios sources say.
Morgan Stanley has not responded to requests for confirmation of his involvement.
Axios said selling the East Coast properties would be “relatively straightforward,” saying sources told the online news site that the nonprofit hospitals “are considering Prospect’s East Coast hospitals in their Respective states like feeders or density games ”.
Officials from Prospect and ECHN told the Journal Inquirer this week that they are exploring options, but no decision has been made on the sale of hospitals.
“Prospect Medical Holdings continues to complete its strategic review to explore opportunities to expand services, improve access and reduce costs,” the company said in a statement. “This review may reveal a variety of options, including partnering with another organization, strategic investment, or additional opportunities.”
The release says Prospect has conducted similar reviews in the past.
“At this point, no specific results have been determined, nor a date on which the review will be completed,” said Prospect, adding that he would continue to maintain his daily operations and provide patient services as he continued to operate. it focuses on exiting the most recent COVID. -19 overvoltage. “We also continue to make ongoing investments in our hospitals and facilities, our staff and the communities we serve. “
ECHN CEO Deborah Weymouth said ECHN’s mission to improve the health of the region is “our top priority”.
“For over 100 years, Rockville General and Manchester Memorial Hospitals have engaged with thousands of nurses, physicians, therapists, technicians and service providers to proudly provide care to you and your family,” she said in a prepared statement. “No change in the healthcare industry will impact the moments of caring that have passed through generations, as our hospitals are part of the very fabric of our community. “
Since the COVID-19 pandemic shows no signs of ending anytime soon, having high-quality care close to home is “paramount,” Weymouth said.
“Our physicians, providers, nurses and everyone who serves healthcare in our network are committed to our patients,” she said. “The strategy of serving this community with compassionate, high-quality care will continue. “
Prospect-ECHN pointed to recent investments as proof of its commitment to its healthcare network, investments the company said this week will continue.
In October, the state’s Office of Health Strategy held a virtual public hearing to discuss a certificate of need filed by Prospect ECHN to consolidate Manchester Memorial Hospital and Rockville General Hospital under one license.
ECHN officials said the move was aimed at eliminating redundant administrative processes, improving the patient experience and saving money.
Brian A. Carney, the need certificate supervisor, said Thursday the hearing file was closed Thursday and the OHS had until March 6 to make a decision.
In November, Prospect-ECHN sold its long-term care facility, Woodlake in Tolland, to a new operator.
In 2019, Prospect sold ownership of Manchester Memorial and Rockville General hospitals, as well as properties in California and Pennsylvania, to Alabama-based Medical Properties Trust Inc. in a $ 1.55 billion deal. dollars.
Prospect purchased the non-profit ECHN in 2016, with a promise to continue operating all ECHN facilities until 2020.