Sources have told The Connecticut Mirror it has asked for $16 million per year over five years in state funding, or $80 million total.Ī YNHH spokesperson declined to comment. YNHH did not disclose an amount it is seeking from the state nor how much lower of a purchase price it is requesting. YNHH officials said the state funding would “not flow to or benefit” Medical Properties Trust, Prospect Medical or its own health system but would instead be used to narrow the financial deficit at Waterbury Hospital and Eastern Connecticut Health Network, which includes Manchester Memorial and Rockville General hospitals, as they recover from the cyberattack. Under the current sale proposal, MPT would receive $355 million, or roughly 80% of the total deal value.īut, after a cyberattack this summer crippled operations at the Prospect-owned hospitals, YNHH is now looking for amendments to the original deal, including state funding and a reduced purchase price. Medical Properties Trust, a publicly traded real estate investment trust, or REIT, has built a $19 billion business on transactions like the one with Prospect, known as “sale-leasebacks.”Īs part of the proposed acquisition in Connecticut, YNHH wants to purchase back the real estate of the three hospitals from MPT, which would mean they would no longer be on the hook for rent payments. “This isn’t something that I feel like the average resident of these communities that are served by these hospitals can even fathom - that amount of money being moved around from one corporate entity to another,” said Rep. The following year, to pay for the loan, Prospect sold the land and buildings from hospitals it owns in Connecticut, California and Pennsylvania to Medical Properties Trust for $1.4 billion, then leased back those hospitals from the trust, CBS News reported. In 2018, Prospect, then majority-owned by private equity firm Leonard Green & Partners, took out a $1.1 billion loan to fund a $457 million dividend for its executives and investors. Prospect Medical Holdings, the Los Angeles-based company that owns embattled Waterbury, Manchester Memorial and Rockville General hospitals, is one of MPT’s biggest tenants. MPT has also played a critical role in the rise of private equity investment in hospitals by providing investors with a way to generate cash off their health care investments, according to reports from The Wall Street Journal. If Yale New Haven Health’s proposed $435 million acquisition of three Connecticut hospitals owned by Prospect Medical Holdings were to gain state approval, most of the money would go to a company that most state legislators, local leaders and residents have never heard of: the hospitals’ landlord.Īlabama-based Medical Properties Trust, or MPT, is one of the country’s biggest hospital landlords, with over 200 health care facilities in the U.S.

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