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Yale New Haven to Pay $45 Million to Settle Prospect Dispute, Clearing Path for Hospital Sales

A bankruptcy judge is scheduled to consider approval on Oct. 10.

Overview

  • The agreement ends all pending litigation between Yale New Haven Health and Prospect Medical Holdings, according to statements and court filings.
  • The collapsed 2022 plan for Yale New Haven to buy Waterbury, Manchester Memorial and Rockville General for $435 million led to dueling breach-of-contract claims.
  • Hartford HealthCare is the stalking-horse bidder at $86.1 million for Manchester Memorial and Rockville General, setting a floor for an upcoming auction.
  • UConn Health says it is preparing a bid for Waterbury Hospital, and any eventual transactions will require governance and court approvals.
  • Medical Properties Trust, Prospect’s debtor-in-possession lender, said it expects the $45 million to pay down its $105 million bankruptcy loan to Prospect.