A last-minute deal was reached in Pennsylvania to keep two hospitals owned by Prospect Medical Holdings open, but the fate of the organization鈥檚 hospitals in 海角换妻 is still uncertain following the collapse of a deal with Yale New Haven Health in February.
at a public hearing this month discussed keeping the two Prospect hospitals running in that state. The hearing came after Prospect filed for bankruptcy in January.
A deal was reached Sunday that will allow the Pennsylvania hospitals to remain open while a restructuring of the health system is worked out.
The deal 鈥渋s not a permanent fix,鈥� said Mary Bugbee, health care director at Private Equity Stakeholder Project, a nonprofit tracking private equity investments in health care.
鈥淏ut it brings a lot of relief to the health care workers and the patients and the community served by Crozier Health in Delaware County," she said. "Because those hospital closures would be absolutely devastating."
In 海角换妻, Prospect-owned Waterbury Hospital, Manchester Memorial Hospital and Rockville General Hospital remain at risk of closure should a buyer fail to step in at bankruptcy court.
Bugbee remained cautious about any new buyer, saying it still could be driven to chase profits for its investors at the expense of local care.
鈥淔or example, Glenwood Regional Medical Center in Louisiana, that new operating company had ties to Medical Properties Trust,鈥� she said. 鈥淭here's a risk that a new operating company that's interested in these hospitals might not be a big improvement from Prospect itself,鈥� she said.
In 海角换妻, the real estate investment firm Medical Properties Trust owns land that once belonged to the three Prospect-owned hospitals. The hospitals now pay rent in a sale leaseback arrangement by Prospect.
Workers at the hospitals are also raising concerns about any future buyer.
鈥淎ny sale must include the adoption of our collective bargaining agreements, as well as those of SEIU 1199 and AFT, to protect workers and maintain stability in patient care,鈥� said Edmund Gadomski, executive secretary of the Waterbury Hospital union. 鈥淥ur priority is securing a responsible operator committed to both the workforce and long-term investment in these hospitals.鈥�
Across the U.S., at least six hospitals owned or previously owned by private equity announced plans to close, or have closed since January, according to the Private Equity Stakeholder Project. The hospitals were funded by private-equity investors including Cerberus Capital, Patient Square Capital and Apollo Global Management in Pennsylvania, Florida and Colorado.
