 | |
| Company type | Private |
|---|---|
| Industry | Healthcare |
| Founded | 1996 in California, US |
| Headquarters | , US |
Number of locations | 16 hospitals (2024) |
Area served | |
Key people |
|
| Services | Hospital operation |
Number of employees | 18,000 (2024) |
| Subsidiaries |
|
| Website | www |
Prospect Medical Holdings is a private healthcare company based in Los Angeles, California which operates 16 hospitals in the United States, mainly in California and the Northeastern United States. [1] [2] [3]
Prospect was founded in 1996 by a group of physicians in California. In 2010, private equity firm Leonard Green & Partners (LGP) acquired a 61.3% stake in Prospect in a $363 million leveraged buyout. [3]
Amid the hospital system's fiscal troubles, Leonard Green attempted twice to sell the company in 2015 and 2018, but failed due to the company's poor financials. Prospect then initiated a $1.31 billion dividend recapitalization, which allowed it to refinance its debt and landed Leonard Green $658.4 million in dividends and management fees. [3]
In 2019, Prospect sold its California, Connecticut, and Pennsylvania hospital real estate to Medical Properties Trust (MPT), a healthcare real estate investment trust, for $1.386 billion in order to pay off debt. However, this sale-leaseback transaction stuck Prospect's hospitals with triple-net leases, requiring that the hospitals pay rent, property taxes, and maintenance on the properties. [3]
In 2021, Leonard Green once again attempted to sell the chain, this time aiming to sell to Prospect's other part-owners, David Topper and Sam Lee. Approval for LGP's attempted sale was held up by the Rhode Island attorney general, who, given the dire financial situation LGP was leaving the health system in, conditioned its approval on LGP placing $120-150 million in escrow to back up its two fiscally strained hospitals in the state. In response to the AG's conditions, LGP threatened to shut down the hospitals. The pressure of potential loss of healthcare services led the AG to lower the escrow obligation to $80 million while also requiring LGP to commit over $30 million to the system during the transition. [4]
Also in 2021, Prospect and Yale New Haven Health (YNHH) began talks aimed at a sale of Prospect's three Connecticut hospitals to YNHH. [5] The two companies in 2022 signed a $435 million agreement for the transfer of Waterbury Hospital, Manchester Memorial Hospital, and Rockville General Hospital. [6] However, following a high-profile six-week cyberattack in 2023 by hacker group Rhysida against Prospect, YNHH began to raise concerns about Prospect's financial difficulties. These troubles were only worsened by the cyberattack, and led to a $7 million bailout by the state to keep the hospitals running. Problems included stalled Medicaid payments resulting from the attack, as well as deteriorating maintenance conditions at the hospitals and overdue bills to outside vendors. As a result, YNHH proposed a "Recovery Plan," wherein Prospect would lower the purchase price in exchange for YNHH providing immediate managerial support in the wake of the attack. The deal would also require financial support from the state. [5] The state indicated its support for the new plan in March 2024, [7] however YNHH sued Prospect in May [8] to terminate the deal, stating that Prospect violated their 2022 purchase agreement by failing to make rent payments on the hospitals, not paying their taxes, and driving away physicians and vendors. [9] Prospect responded through a countersuit, alleging that YNHH deliberately stalled the closing of the deal in order to lower their monetary commitment. [8] [9]
New Haven is a city in New Haven County, Connecticut, United States. It is located on New Haven Harbor on the northern shore of Long Island Sound and is part of the New York City metropolitan area. With a population of 135,081 as determined by the 2020 U.S. census, New Haven is the third largest city in Connecticut after Bridgeport and Stamford, the largest city in the South Central Connecticut Planning Region, and the principal municipality of Greater New Haven, which had a total population of 864,835 in 2020. Prior to 1960, it was the county seat of New Haven County until the county governments were abolished that year.
The Yale School of Medicine is the medical school at Yale University, a private research university in New Haven, Connecticut. It was founded in 1810 as the Medical Institution of Yale College and formally opened in 1813.
Yale New Haven Hospital (YNHH) is a 1,541-bed hospital located in New Haven, Connecticut. It is the second-largest hospital in the United States and one of the largest in the world. It is the primary teaching hospital for the Yale School of Medicine and the Yale School of Nursing. Owned and operated by the Yale New Haven Health System, YNHH includes the 168-bed Smilow Cancer Hospital at Yale New Haven, the 201-bed Yale New Haven Children's Hospital, and the 76-bed Yale New Haven Psychiatric Hospital.
Tenet Healthcare Corporation is a for-profit multinational healthcare services company based in Dallas, Texas, United States. Through its brands, subsidiaries, joint ventures, and partnerships, including United Surgical Partners International (USPI), the company operates 65 hospitals and over 450 healthcare facilities. Tenet also operates Conifer Health Solutions, which provides healthcare support services to health systems and other clients.
St. Vincent's Medical Center is a 473-bed tertiary care Catholic hospital in Bridgeport, Connecticut, United States. It caters to a large population in Southern Connecticut and provides comprehensive and advanced medical services. The hospital is now controlled by Hartford HealthCare, who acquired it from Ascension in 2019.
Bridgeport HospitalMilford Campus is a not-for-profit hospital offering acute-care services, including ED, urgent care, joint replacement and wound care. It is located at 300 Seaside Avenue in Milford, Connecticut.
Leonard Green & Partners, L.P. (LGP) is an American private equity investment firm founded in 1989 and based in Los Angeles. The firm specializes in private equity investments. LGP has invested in over 95 companies since its inception, including Petco and The Container Store.
Yale Cancer Center (YCC) was founded in 1974 as a result of an act of Congress in 1971, which declared the nation's "war on cancer". It is one of a network of 56 Comprehensive Cancer Centers designated by the National Cancer Institute (NCI). Currently directed by Dr. Eric Winer, the Cancer Center brings together the resources of the Yale School of Medicine (YSM), Yale New Haven Hospital (YNHH), and the Yale School of Public Health (YSPH).
Trinity Health is an American not-for-profit Catholic health system operating 92 hospitals in 22 states, including 120 continuing care locations encompassing home care, hospice, PACE and senior living facilities. Based in Livonia, Michigan, Trinity Health employs more than 120,000 people including 5,300 physicians.
Crozer Health is a four-hospital health system based in Delaware County, Pennsylvania, and serving Delaware County; northern Delaware and parts of western New Jersey.
Connecticut Children's Medical Center is a nationally ranked, independent, non-profit, pediatric acute care hospital located in Hartford, Connecticut. The hospital has 185 beds and is the primary pediatric teaching affiliate of the University of Connecticut School of Medicine and the Frank H. Netter MD School of Medicine at Quinnipiac University. The hospital provides comprehensive pediatric specialties and subspecialties to pediatric patients aged 0–21 throughout Connecticut and the New England region, but also treats some adults that would be better treated under pediatricians. Connecticut Children's Medical Center also features the only ACS verified level 1 pediatric trauma center in the region, and 1 of 2 in the state. The hospital is also 1 of 2 children's hospital in the state of Connecticut.
Saint Mary's Hospital is a Yale-affiliated urban hospital located at 56 Franklin Street, Waterbury, Connecticut. Operated by Trinity Health, it was founded in 1907 by the Sisters of Saint Joseph of Chambéry and is designated as a Level II trauma center. Saint Mary's has been a teaching hospital for the Yale University School of Medicine for over 40 years.
Bohdan Pomahač is a Czech plastic surgeon. He led the team that performed the first full face transplant in United States and the third overall in the world.
Steward Health Care is a large private for-profit health system headquartered in Dallas, Texas. It utilizes an integrated care model to deliver healthcare across its hospitals and primary care locations, as well as through its managed care and health insurance services. As of the start of 2024, Steward operated 33 hospitals and employed 33,000 people in the United States. Steward's international ventures include Steward Colombia, which operates four hospitals, and Steward Middle East, which operates in Saudi Arabia and the United Arab Emirates. The company is in bankruptcy as of May 2024.
Change Healthcare Inc. is a provider of revenue and payment cycle management that connects payers, providers, and patients within the U.S. healthcare system. The name also refers to a company founded in 2007 which subsequently became part of the current conglomerate. The company operates the largest financial and administrative information exchange in the United States.
Medical data, including patients' identity information, health status, disease diagnosis and treatment, and biogenetic information, not only involve patients' privacy but also have a special sensitivity and important value, which may bring physical and mental distress and property loss to patients and even negatively affect social stability and national security once leaked. However, the development and application of medical AI must rely on a large amount of medical data for algorithm training, and the larger and more diverse the amount of data, the more accurate the results of its analysis and prediction will be. However, the application of big data technologies such as data collection, analysis and processing, cloud storage, and information sharing has increased the risk of data leakage. In the United States, the rate of such breaches has increased over time, with 176 million records breached by the end of 2017. There have been 245 data breaches of 10,000 or more records, 68 breaches of the healthcare data of 100,000 or more individuals, 25 breaches that affected more than half a million individuals, and 10 breaches of the personal and protected health information of more than 1 million individuals.
Yale New Haven Health System (YNHHS) is a nonprofit healthcare system with headquarters in New Haven, Connecticut. It is Connecticut's largest healthcare system with 2,409 beds and includes hospitals, physicians and related health services throughout Connecticut as well as New York and Rhode Island. Institutions affiliated with the system include Bridgeport Hospital, Greenwich Hospital, Lawrence + Memorial Hospital, Westerly Hospital, Smilow Cancer Hospital, Yale New Haven Hospital, Yale New Haven Children's Hospital, Yale New Haven Psychiatric Hospital and Northeast Medical Group.
Welltower Inc. is a real estate investment trust that invests in healthcare infrastructure. It is ranked 583rd on the Fortune 500. As of December 31, 2022, the company had investments in approximately 3,000 properties, all of which were in the United States, Canada, and the United Kingdom.
Yale New Haven Children's Hospital (YNHCH) is a 202-bed pediatric acute care children's hospital located in New Haven, Connecticut. The hospital is affiliated with the Yale School of Medicine. The hospital provides comprehensive pediatric care to infants, children, teens, and young adults aged 0 to 21 in Connecticut and throughout New England. Yale New Haven Children's Hospital also features a Level 1 Pediatric Trauma Center, one of two in the state.