Waterbury Hospital to be sold to California company

Estimated read time: 1-2 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

WATERBURY, Conn. (AP) — Greater Waterbury Health Network has reached an agreement to sell Waterbury Hospital to a Los Angeles-based company.

Darlene Stromstad, the health network's chief executive officer, told the Republican-American newspaper (http://bit.ly/1F3xMM4 ) that officials signed a letter of intent Friday to sell it to Prospect Medical Holding Inc.

Terms of the agreement were not released.

Stromstad said they chose Prospect for its "coordinated regional care" approach to health care and "its keen focus on collaborating closely with physicians, medical groups, community providers, payers and other key stakeholders, such as labor unions."

Prospect also has proven it can handle the regulatory process because of its experience with the highly regulated Rhode Island health care market, she said.

As part of the proposed deal, GWHN plans to offer more services and upgrade to its main campus, Stromstad said. The transaction will also allow the network to add and maintain more quality physicians.

Thomas M. Reardon, president of Prospect East, a unit of Prospect Medical Holdings, said they will contact the unions and welcome them. Prospect intends to assume existing union contracts and pensions, he said.

"We're not going to have any hassles in that regard," he said.

Saint Mary's Hospital was not invited to join the deal, Stromstad said.

It comes five months after Tenet Healthcare Corp. backed out of deal to acquire Waterbury, Saint Mary's and three other hospitals in the state.

Prospect owns 13 hospitals and 40 clinics and outpatient centers in California, Rhode Island and Texas.

Waterbury Hospital has 176 beds and an operating budget of $270 million.


Information from: Republican-American, http://www.rep-am.com

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Most recent Business stories

Related topics

The Associated Press


    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast