Yale New Haven Officially Signs Deal To Acquire Manchester Hospital

NEW HAVEN, CT — Yale New Haven Health has made its move to acquire Manchester Memorial Hospital official.

Yale New Haven and Prospect Medical Holdings, Inc. Thursday announced they have signed documents for Yale to officially acquire two Connecticut health systems from Prospect. The agreement also includes the health systems' related businesses, real estate assets, physician clinic operations and outpatient services.

The purchase price was not disclosed and the deal is subject to customary regulatory approvals.

Yale New Haven first announced its intentions in February.

Yale New Haven has agreed to purchase the assets and operations associated with:

• Waterbury Hospital (also known as Waterbury Health) in Waterbury, CT, with 357 certified beds
• Manchester Memorial Hospital (and some Eastern Connecticut Health Network holdings) in Manchester, with 249 certified beds
• Rockville General Hospital in Vernon, (currently an ECHN affiliate) with 102 certified beds
• Prospect Provider Group of Connecticut (Alliance Medical Group and ECHN Medical Group)
• Visiting Nurse and Health Services of CT

ECHN and Waterbury Health, with approximately 4,400 employees, would return to not-for-profit status, providing continued access to care at their campuses and outpatient care locations. The related real estate assets of the hospitals are to be released from the existing master lease agreement between the real estate owner and Prospect at closing.

"Now, more than ever, it's critical for us to find ways to creatively sustain local access to high-quality care,” said Christopher O'Connor, president and CEO of Yale New Haven. "This transaction offers unique advantages to the residents of the communities served and allow for continued patient access to critical healthcare services while being strengthened by the quality-of-care YNHHS is known for nationally."

The chief executive for both Rockville and Manchester hospitals welcomed the move.

"We are excited about the opportunity to join YNHHS," ECHN President and CEO Deborah Weymouth said. "We are proud of our accomplishments and appreciative of the significant investments made by Prospect to preserve jobs and respond to the needs of the community throughout the pandemic while increasing both quality ratings and improvements to the patient experience."

Waterbury Hospital is "deeply committed to caring for our communities and adapting to the rapidly evolving healthcare landscape," said Dr. Justin Lundbye, president and CEO of Waterbury Health.

Lundbye added, "Along with ECHN, we are proud of what we’ve accomplished, including investing millions of dollars in our communities, preserving jobs, increasing quality ratings, and being leaders in Connecticut’s response to the pandemic. We are confident YNHHS will continue this legacy."

According to the announcement, Yale New Haven Health and Prospect are working with the Office of Health Strategy and the Department of Public Health to obtain regulatory approval, including filing a Certificate of Need with the state this fall.

Pending regulatory approval, the three hospitals will become part of the Yale New Haven Health System, similar in nature to Greenwich and Bridgeport Hospitals, as well as Lawrence + Memorial Health.

As part of Yale New Haven Health, Waterbury Health and ECHN will be able to "enhance delivery of care across a wide spectrum of primary and specialty services," officials said. "Yale New Haven Health has a stellar track record with hospital affiliations with its success in preserving and enhancing the delivery of high-quality care locally. Yale New Haven Health is focused on preserving jobs in the local communities, supporting employee pensions, and assessing the future capital needs of these facilities. This is clearly evidenced today in places like New London, Milford and Westerly."

O'Connor added, "Working with our partners at the Yale School of Medicine, this will create a seamless and integrated delivery system that will serve the best interests of our patients in the most cost-effective manner possible throughout the state of Connecticut and the entire region."