He declined to say how much money was still owed to vendors.Ĭharmel warned that the financial troubles could affect the sale of Prospect’s Connecticut hospitals to Yale New Haven Health. In an emailed statement last week, Lundbye said $25 million to $30 million had been provided by Prospect to its Connecticut-owned hospitals since June, when the debt refinancing was completed, but he did not say how the money was used or whether it went toward vendor payments. Many vendors have Waterbury and Manchester hospitals on credit hold and are refusing to do additional business with the hospitals until AP balances (vendor receivables) are paid down.” “They have continued to grow and are now in excess of $40,000,000. “In previous discussions and correspondence about conditions at Waterbury, I told you that Justin was stretching out his vendors (many of them local), and the hospital’s accounts payable were growing,” Charmel wrote. In his email to the governor, Charmel said the company’s “long awaited” debt refinancing was supposed to “improve liquidity and provide working capital” to hospitals like Waterbury, Manchester and Rockville, but “none of the proceeds found their way to Connecticut.” Prospect Medical owns hospitals in California, Pennsylvania, Rhode Island and Connecticut. That really makes it even more vital that they’re able to move forward in a way that allows the patients of Connecticut to be cared for.” “What has been clear, and what was even more clear today, was the compounding impact of the cybersecurity event on the situation at the hospitals. Cristin McCarthy Vahey, D-Fairfield, co-chair of the Public Health Committee. We seem to be at a point where the problems are starting to compromise patient care.” “We need to get the merger approved, because we want Yale here in Manchester. “There’s no question things have gotten pretty perilous at ECHN, mostly because of the cyberattack, but also because Prospect is having serious a serious cash flow problem,” Doucette said. How much did nonprofit arts and cultural organizations contribute to the CT economy last year?ĭo you know the answer? Play this week's news quiz to find out. Jason Doucette, D-Manchester, said hospital officials were distressed about their finances. Officials from Yale and Prospect could not be reached for comment late Tuesday. Representatives with Prospect Medical “claim they don’t have enough resources” to fund the upgrades, he added. But they can’t do that, because has not made a decision. “Because the computer system for the hospitals is too old, the recovery plan should include upgrading the computer system for functionality. There needs to be a recovery plan,” he said. The computer system was described as outdated. Yale New Haven Health officials raised concerns about the software at Prospect-owned hospitals following the cyberattack, Anwar said. “They were pleading with us to do what we could to expedite the sale.” “They outlined several issues around cash flow and vendors,” Currey said. Jeffrey Currey, D-East Hartford, who attended Tuesday’s meeting with other legislators, said hospital officials were trying to “convey a sense of urgency to get the sale completed.” … We have not missed any of the statutory timelines.” The next steps are, we have, by statute, 60 days to incorporate any changes. We have just received the comments back from the parties. We prepared an initial draft we shared it with the transacting parties. “We have met our timelines on the cost and market impact review. “There is a statutory process,” she told the The Mirror last week. In Pennsylvania, the lease-back agreement meant one health care system was on the hook for $35 million a year in rent, CBS reported.ĭeidre Gifford, executive director of Connecticut’s Office of Health Strategy, has defended the state’s timetable for reviewing the certificate of need. To pay back the loan, Prospect sold the land and buildings from hospitals it owns in Connecticut, California and Pennsylvania to a real estate investment trust, then leased back those hospitals from the trust. In 2018, the company took out a $1.12 billion loan and used the funds to pay its executives and shareholders a $457 million dividend, CBS News reported. “I think you are going to see some real clarity in the next 60 days.” “I think they are OK for the near term, but they definitely would like some clarity on the, then the insurance guys would feel more confident” in paying reimbursements, he said.

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