Yale New Haven Health wants out of its contract with Prospect [Video]

NEW HAVEN, Conn. — Yale New Haven Health, a nonprofit healthcare system based out of New Haven, has filed suit asking the state Superior Court to let it out of its contract with Prospect Medical Holdings to buy Manchester Memorial, Rockville General, and Waterbury hospitals.

YNHH, the largest healthcare system in Connecticut, is suing Prospect, claiming that the group violated its contract with Yale by defaulting on rent and tax liabilities, allowing its facilities to deteriorate, mismanaging assets, driving away physicians and vendors and performing a “pattern of irresponsible financial practices.”

In 2022, YNHH said it reached a deal with Prospect Medical Holdings to buy the hospitals for $435 million, but after Prospect suffered a cyberattack in August 2023 and it became public knowledge that Prospect owes tens of millions of dollars to its vendors and the state in taxes, YNHH asked Prospect to reconsider the purchase price. …