By Lauren Giella
Senior Reporter
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UConn Health announced that it submitted its bid to take over Waterbury Hospital, saving it from potential closure after its parent company filed for bankruptcy.
The health system held a press conference in Waterbury Tuesday to announce the submission and note their vision for health care in the region.
“Your healthcare workforce and your hospital will continue caring for you without interruption — and with UConn Health, that care will be even more secure for the future,” UConn Health Chief Executive Officer and Executive Vice President for Health Affairs Dr. Andrew Agwunobi said at the event. “This is what a public health system is meant to do — step forward to serve communities when stability and access are at risk. We’re proud to be that partner for Waterbury.”
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Why It Matters
Waterbury’s current owner, Prospect Medical Holdings, filed for Chapter 11 bankruptcy in January. Prospect Medical Holdings is based in Los Angeles, California, and owns 16 hospitals across four states, including three in Connecticut – Manchester, Rockville General and Waterbury.
Connecticut Attorney General William Tong accused the holding company of negligent misrepresentation, unjust enrichment, negligent performance of duties, violations of privacy laws and violations of the Connecticut Unfair Practices Act.
In a February filing in Texas bankruptcy court, the state said Prospect promised “robust investment and careful quality control” when it bought the three hospitals. But instead, Prospect “took the Connecticut Hospitals private and then sold the ground out from under them to fund dividends to its shareholders.”
According to the court filing, this neglect led to a deterioration in patient care, a data breach in 2023 and more than $100 million in unpaid taxes to the state. It was later reported by the Connecticut Mirror that Prospect Medical Holdings owes the state more than $127 million in unpaid hospital provider taxes going back over three years.
In 2022, Prospect signed a deal to sell its three Connecticut facilities to Yale New Haven Health, but the deal was caught up in litigation and was not finalized.
What To Know
As a state-backed academic health system, UConn Health’s takeover could greatly expand the state’s public health care infrastructure. Connecticut Governor Ned Lamont was at the press conference to voice his support for the deal.
In a statement to Newsweek, Lamont said this agreement represents a significant step toward protecting health care access for the people of Waterbury and the surrounding region.
“Waterbury families deserve reliable, high-quality care close to home, and this partnership helps guarantee exactly that,” he said. “UConn Health’s bid reflects our shared commitment to strengthening care in every corner of our state while preserving access, protecting jobs, and ensuring long-term stability for the patients, providers, and communities who rely on this hospital every day.”
UConn Health said this acquisition secures the hospital’s operations, safeguards hundreds of jobs and ensures Waterbury residents will continue to have access to high-quality, affordable health care.
“Today marks a new day for Waterbury Hospital — and a new era for public health care in Connecticut,” UConn Health Board of Directors Chair John Driscoll said in a statement. “UConn Health’s leadership at Waterbury Hospital will ensure that care continues, jobs are protected, and the hospital operates with full public accountability. This is a rebirth for Waterbury Hospital and a reaffirmation of UConn Health’s public mission.”
Last week, UConn Health submitted its bid to buy Waterbury for $13 million in cash and assume $22 million in assumed debts.
CT Insider reported that UConn Health was named as a “stalking horse” bidder and set the minimum price for the hospital in auction, which will be on November 17. If no other offer comes in by the November 14 deadline, UConn will be granted the purchase of the hospital and can move forward with the takeover process. The hearing to approve the Waterbury sale is set for November 18.
According to WFSB, the total cost of the hospital is expected to reach between $420 million and $500 million and will be paid off through bond issues over five years.
What Happens Next
During a special session on Wednesday and Thursday, state lawmakers will vote on $390 million in bonding over a five-year period for the UConn 200 program, which authorized UConn to issue bonds and finance capital projects and use bond proceeds for the UConn Health Center Joint Venture Initiative. If approved, this will help support UConn Health's investment in Waterbury Hospital.
What People Are Saying
Waterbury Health President and CEO Deborah Weymouth said in a statement: “This agreement represents a vote of confidence in the people of Waterbury HEALTH — in our caregivers, our physicians, and the essential role we play in the region. It reinforces that what we do every day truly matters. We are optimistic that this partnership will bring long-term stability, growth, and opportunity for the Greater Waterbury community and beyond.”
UConn Health CEO and Executive Vice President for Health Affairs Dr. Andrew Agwunobi said in a statement: “Our mission is clear: to serve the needs of the community. This partnership shows what public medicine can achieve — care close to home, backed by the full strength of a leading academic health system.”
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