HARTFORD, Conn. (WTNH) — Prospect Medical Holdings announced that it is initiating chapter 11 proceedings in the United States Bankruptcy Court.
Prospect Holdings owns three hospitals in Connecticut: Waterbury Hospital, Rockville General Hospital and Manchester Memorial Hospital.
While navigating a way to realign its organizational focus outside of California, the company said they are seeking Bankruptcy Court approval for continued payment of employee wages and benefits.
In regards to this incident, Governor Ned Lamont said, “The administration has been preparing for the possibility that Prospect Medical Holdings would file for Chapter 11 bankruptcy. The three hospitals remain open, and we will continue to hold Prospect accountable to provide quality care to the communities that rely on these institutions.”
Governor Lamont also said that there is a cross-agency team in place to ensure that hospital operations are uninterrupted and that they are continuing to seek out new operators for the institutions.
Attorney General William Tong said that his office is also overlooking this situation very closely.
“I am disappointed that Prospect Medical Holdings has decided to file for bankruptcy. However, this changes nothing with regards to their obligations to patient care and safety,” Tong said.
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