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CT Insider: Prospect’s Deal to Sell Connecticut Hospitals in Flux After Bankruptcy Filing

CT Insider

Thomas S. Marrion, partner and co-chair of the Corporate & Business Transactions Group, was recently quoted in the CT Insider discussing Prospect Medical Holdings’ (“Prospect”) bankruptcy and its deal to sell three Connecticut hospitals—Waterbury, Manchester Memorial, and Rockville General—to Yale New Haven Health. Currently, the sale is on hold as Prospect begins the bankruptcy process.

As the process unfolds, Waterbury, Manchester Memorial and Rockville General ‒ beset by financial woes along with allegations of declining maintenance and nonpayment of bills ‒ could end up on the auction block as part of what is called a “363 sale,” said Thomas S. Marrion, a professor at UConn Law School and partner at Hinckley, Allen & Snyder LLP.

He noted that prospective purchasers would determine the sale price for the three hospitals, but Prospect would still need approval from state regulators.

“There would be at least the opportunity for a competitive auction with competitive bids,” he said.

Any deal for the hospitals struck as part of the bankruptcy would still have to be approved by state regulators through the Certificate of Need process, Marrion said. “The bankruptcy filing does not override that regulatory approval requirement,” he said.

Read the full article on CT Insider’s website.

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