Latest news with #ProspectMedical
Yahoo
4 days ago
- Business
- Yahoo
Buyers express interest in Prospect's three CT hospitals that face bankruptcy. Morale ‘non existent'
With the bidding process underway for a buyer to acquire Prospect Medical Holdings' three hospitals in the state, three buyers have expressed interest but an official announcement is not expected until later this month. None of the buyers' names have been made public, according to state and health officials. But there is anticipation and hope that a buyer will be found to keep the hospitals on solid footing after Prospect, a private equity company, filed for Chapter 11 bankruptcy this past January. Bankruptcy court proceedings are occurring in the Northern District of Texas Dallas Division and Yale New Haven Health announced last month that no deal was possible to acquire the hospitals due to 'mismanagement.' Julia Bergman, a spokesman for Gov. Ned Lamont said the 'governor believes these hospitals are valuable institutions that provide quality health care to the communities they serve. 'He looks forward to their continued success in the future under a new operator,' she said. Prospect, which operates Manchester Memorial, Rockville General and Waterbury Hospital, has faced fiscal challenges in many of its hospitals in the state, from delayed payments to physicians and vendors to a shortage of health care providers. Waterbury Mayor Paul Pernerewski Jr. said he learned that there are several bidders interested and expects to know more in the coming weeks. He said given what has happened with Waterbury Hospital under the ownership of Prospect, it 'would be helpful if the new buyer is not a private equity company.' There is a call in the legislature to restrict private equity in response to the effect of Prospect Medical Holding's impact on its three hospitals and state officials have raised concerns about profits being maximized over patient care. Connecticut lawmakers are considering legislation to restrict private equity's role in Connecticut hospitals but time is drawing down on the session. SB 1507 would prohibit private equity companies and real estate investment trusts from acquiring or increasing direct or indirect ownership interest in or operational or financial control over a hospital or health system, according to the bill's analysis. Sen. Saud Anwar, Senate chairman of the Public Health Committee, said it is integral to pass legislation. 'We are trying to get everyone on the same page,' he said.'We need to make sure we have a plan to protect our citizens from people who are dedicated to making money for themselves at the cost of patients.' There was hope for a buyer for Prospect's hospitals in 2022 when Yale New Haven Health agreed in a tentative agreement to purchase Prospect's three hospitals for $435 million but that deal has been bogged down in lawsuits, with Yale deciding that the deal was not possible. Dana Marnane, director of public relations and communications for Yale New Haven Health, declined to comment for this article. Nurses and unions at several of Prospect's hospitals in the state have told the Courant that their hospitals have been decimated, with some continuing to cite concerns about patient care as they wait for a new owner to purchase the hospitals. This followed a state Department of Public Health consent order issued in November of last year fining Waterbury Hospital $60,000 for violations of state law and called on the hospital to develop, review and revise policies and procedures related to staffing levels, abuse prevention, implementation of physician orders, timely initiation of Emergency Department triage protocol, among other policies. The consent order also called for an independent expert compliance contractor of the hospital. Brittany Schaefer, public information officer for the Department of Public Health, said in an email Monday that the consent order remains active. 'The independent expert compliance contractor continues to monitor the items outlined in the consent order and submit monthly reports to DPH and Waterbury Hospital leadership regarding this,' Schaefer said, adding that the contractor also meets regularly with DPH and Waterbury Hospital leadership to discuss reports/items outlined in the consent order. Bankruptcy court filing shows recently that Prospect Medical received permission to close two Pennsylvania hospitals trying to sell them but no one was interested. Robert White, distinguished practitioner in residence at Quinnipiac University School of Law, said in an email that Prospect will need an infusion of cash from somewhere soon. 'You may see more closings,' he said. 'They are trying to sell assets.' Meanwhile, the state Office of Health Strategy approved a settlement allowing Prospect to seek approval of the consolidation of the Rockville General and Manchester Memorial hospital licenses from the Department of Public Health. The settlement also cleared a path for the operator to permanently shutter all services aside from the emergency and behavioral health at Rockville General Hospital in Vernon, The CT Mirror reported. 'This isn't just a failure – it's a disgrace,' said Sen. Jeff Gordon, R-Woodstock, in a statement. 'Once again, OHS has shown it is completely out of touch with the real health care needs of Connecticut families and seniors. Ed Gadomski, Connecticut Healthcare Associates internal union organizer, who represents the nurses and technicians at Waterbury Hospital, continues to state that almost all of its departments are understaffed with nursing to patient ratios well over the appropriate levels set by the Hospital Staffing Committee. He continues to wait on the outcome of a complaint he filed with the Department of Public Health charging that the hospital is violating the Hospital Staffing Law. Suzanne Koenig, president of SakHealthcare and the patient care ombudsman for Prospect's hospitals, stated in her report, according to court filings, that 'overall patient care and safety are being maintained at the ECHN hospitals (Manchester Memorial Hospital and Rockville and Waterbury). 'The ombudsman did not observe any staffing issues that put patients in immediate danger or jeopardized their care,' Koenig said in her report. She did however report that staffing remains challenging. 'Specifically, MMH and Waterbury have had several registered nurses (each an 'RN') call out sick or no-show,' Koenig said in her report. 'The hospitals, however, have done a good job finding replacement RNs for shift coverage, often on short notice. The hospitals are also actively recruiting and offering sign-on and referral bonuses as incentives.' But Gadomski said he continues to hear of staff members leaving the hospital. 'Morale is non existent,' he said. 'We are keeping our heads above water and waiting for the new ownership.' Koenig noted in her report that the Emergency Department at Waterbury Hospital was crowded and the need for expansion as planned was evident. Prospect did not return emails for comment for this story.
Yahoo
16-05-2025
- Business
- Yahoo
2 Catalysts Could Cause This 6%-Yielding Dividend Stock to Soar by the End of 2026
Medical Properties Trust has shored up its tenant base and financial profile. It expects its rental income to steadily rise over the next two years. That will give it more flexibility to return additional cash to shareholders. 10 stocks we like better than Medical Properties Trust › Shares of Medical Properties Trust (NYSE: MPW) have gotten shellacked over the past few years. The hospital-focused real estate investment trust (REIT) lost nearly 80% of its value from its peak a few years ago. Weighing on the stock has been a barrage of tenant issues and higher interest rates. Those problems forced the REIT to take several actions to shore up its portfolio and financial profile, including selling properties and slashing its dividend a couple of times. Those moves are finally starting to pay off. The REIT expects its rental income to rise steadily over the next two years, which could give it more cash to return to shareholders. These catalysts could cause the stock to soar by the end of next year. Two of Medical Properties Trust's former top tenants filed for bankruptcy over the past couple of years. That has had a meaningful impact on the REIT's rental income. However, the healthcare REIT has since replaced its largest tenant with several financially stronger operators. They started paying rent on those properties during the first quarter, contributing $4 million in rental income. Rents from these tenants will steadily rise over the next two years until they reach a fully stabilized rate. Medical Properties Trust expects to receive about $23 million in rent from these tenants in the fourth quarter of this year, which is around a $90 million annualized rate. This rental income will continue growing until it reaches an annualized rate of $160 million by October of 2026. That gives the company a lot of visibility into its future rental income. CEO Ed Aldag said on the REIT's recent first-quarter conference call, "With the progress of our new operators are making across most markets, the steady contributions from our stabilized portfolio, we remain confident in our ability to reach total annualized cash rent of more than $1 billion once our new tenants are fully ramped." On top of that, the REIT didn't receive any revenue from its investment related to another bankrupt tenant (Prospect Medical) or its investment in certain real estate assets in Colombia. Any recovery from these assets, either by finding new tenants for the Prospect properties or selling the assets, would add to its operating results or balance sheet strength in the future. The expected rise in Medical Properties Trust's rental income should help boost its stock price in the coming quarters. Medical Properties Trust has had to conserve cash over the past few years to shore up its balance sheet. As a result, it had to cut its dividend twice. However, its efforts to bolster its balance sheet have worked. The REIT was able to issue $2.5 billion of bonds during the first quarter, which Aldag said would provide sufficient liquidity to cover all debt maturities through 2026. Meanwhile, with its balance sheet back on a firmer foundation, its tenant profile improved, and its rental income rising, it shouldn't have trouble refinancing future debt maturities. Because of that, Medical Properties Trust should have a lot more flexibility to return cash to shareholders beyond its current dividend level. Aldag said in the first-quarter earnings press release that the REIT is "well positioned to grow earnings from our existing in-place real estate portfolio, access capital for accretive growth in a uniquely attractive market, and deliver growing dividends and other returns to our shareholders." The hospital owner could start to rebuild its dividend as its rental income rises. That would add to an attractive income stream that yields over 6%. In addition, chief financial officer Steve Hamner said on the call that the company could look to complete "other transactions to reposition and rationalize our equity value." Among the options it could consider is repurchasing its shares. Given the steep drop in its stock price, repurchases would be highly accretive to shareholders and could give shares a big boost. After sinking over the past several years, shares of Medical Properties Trust could finally start recovering. Rising rental income from replacement tenants will give the REIT more cash to return to shareholders. The hospital owner could start rebuilding its dividend or buy back its beaten-down stock. Those catalysts could help propel the stock price, which, when adding in its dividend income, could enable Medical Properties Trust to produce a strong total return over the next couple of years. Before you buy stock in Medical Properties Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Medical Properties Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $613,951!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $796,353!* Now, it's worth noting Stock Advisor's total average return is 948% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Matt DiLallo has positions in Medical Properties Trust. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2 Catalysts Could Cause This 6%-Yielding Dividend Stock to Soar by the End of 2026 was originally published by The Motley Fool
CBS News
16-05-2025
- Health
- CBS News
Paramedics save baby at Crozer-Chester Medical Center in Pennsylvania weeks after closure
A dramatic moment unfolded outside Crozer-Chester Medical Center on Thursday after Pennsylvania Gov. Josh Shapiro held a press conference calling for stricter regulations of for-profit hospital systems. A car pulled up outside with a mother saying her baby was not breathing. Paramedics, who were outside the Delaware County hospital for the news conference, cradled the baby in their arms. But the baby could not be admitted to Crozer because the hospital had been shut down for weeks. Peggy Malone, the Crozer nurses' union president, became emotional as the mother tried to get her baby help. "Not one child should ever die because those bastards closed our hospital, because they never cared about the people in this community, and we do, and this is why we've been fighting so hard, and somebody has to open our ER now," Malone said. "This can never happen again." Medics were able to save the baby, who was reportedly taken to Nemours Children's Hospital in Wilmington. Malone said the outcome could have been worse. "If that child had died today, the devastation that would have caused that entire family, it's unbearable," Malone said. "And this can't happen. It has to stop now. Get our ER open now. There's no reason that the ER is closed. Get Prospect out of here, hold them accountable and open our eyes now!" CBS News Philadelphia reached out to Prospect Medical Holdings to comment on this story, but we haven't heard back.
CBS News
06-05-2025
- Business
- CBS News
New center in Delaware County opens to help former Crozer Health employees find new jobs
It's been a tough time for the 2,651 employees laid off when Crozer-Chester Medical Center and Taylor Hospital in Delaware County, Pennsylvania, shut down. California-based Prospect Medical Holdings, which owns both hospitals, went bankrupt. The state and county are now offering resources to help employees find new jobs. The Crozer Transition Center, located on the first floor of the Chester Police Department, opened this week. The center helps people update their resumes, file for unemployment and secure medical insurance. "It's really a one-stop shop for individuals who are looking for potential locations to re-employ," Monica Taylor, president of Delaware County Council, said. The transition center will be open 8:30 a.m. to 5:30 p.m. Monday through Friday for up to three months. Kate McGeever, executive director of the Delaware County Workforce Development Board, said that could be extended. "What we've learned in the first couple days is that a lot of Crozer workers have been with Crozer for a long time," McGeever said. "So those are folks who probably don't have a fresh resume who maybe haven't been on a job interview in a while, so we want to help them shine." Michael Winston, a married father of 12, was among dozens of former Crozer Health employees who came to the transition center Tuesday. He spent nine months working as a custodian in the emergency department at Crozer-Chester Medical Center. "Usually, you come to a place like this, you be there half a day," Winston said. "I wasn't even there 45 minutes. So they were super helpful." Winston has been hitting roadblocks while filing for unemployment benefits. "If you're not really savvy with a computer, it's hard," Winston said. Pennsylvania CareerLink Delaware County is hosting a job fair for former Crozer employees on May 13 at Subaru Park. More than 190 employers are expected to attend, and some will be doing on-the-spot interviews.
Business Journals
22-04-2025
- Business
- Business Journals
Crozer Health parent turned down Penn Medicine's $5M lifeline proposal
''We are deeply disappointed by this decision. Patients will be adversely impacted and many talented health care professionals will be displaced.' Story Highlights Prospect Medical rejects Penn Medicine's $5 million offer to delay Crozer Health closure. Penn proposal included an asset purchase at two Crozer Health locations. Crozer Health's two hospitals will begin closing, affecting 2,600 employees. Crozer Health parent company Prospect Medical Holdings rejected an offer that would have provided $5 million in funding to delay the closure of the Delaware County health system, Penn Medicine said Monday. The funding proposal, which included Penn Medicine assuming property leases for some facilities and purchasing their medical equipment, was intended to keep financially ailing Crozer Health operational so talks about a possible sale of the health system could continue. Monday morning, Los Angeles-based Prospect Medical said it has made the "extremely difficult decision" to begin closing Crozer Health's two hospitals: Crozer-Chester Medical Center in Upland and Taylor Hospital in Ridley Park. Prospect has been operating under Chapter 11 bankruptcy protection since January. A hearing on the closure plans for Crozer-Chester and Taylor hospitals is scheduled for Tuesday afternoon at U.S. Bankruptcy Court in Texas. Representatives of Prospect Medical were not immediately available to comment on the decision to reject Penn's funding proposal. Penn Medicine Chief Medical Officer Dr. P.J. Brennan, in a letter sent Monday to Delaware County elected officials and shared with the Business Journal, said Penn was 'deeply saddened to hear' that Prospect Medical plans to close Crozer Health. expand Dr. P.J. Brennan, chief medical officer, Penn Medicine Sabina louise pierce / Penn Medicine 'This is a huge loss for the Delaware County community, the patients who have relied on these hospitals for care, and the more than 2,600 dedicated employees now facing uncertainty,' Brennan wrote. "For nearly two years, Penn Medicine has been actively engaged in efforts to help sustain essential health care services at Crozer Health." Brennan said Penn Medicine's primary goal throughout "this difficult process" has been to preserve access to care, protect health care jobs, and ensure continuity of vital services for Delaware County residents. Penn Medicine has spent months working with state and county officials, as well as a group of other health care providers that sources said included most of the major health systems in the region, on a way to keep Crozer Health from shutting down. 'We have consistently brought both creative and financial solutions to the table — working to develop sustainable models of care, even in the face of significant structural and financial challenges within Prospect," Brennan said in the letter. On April 8, after being informed that Prospect Medical needed $9 million to avoid an imminent closure and severe disruption to operations, Penn Medicine 'stepped forward' with an offer of $5 million, structured as both a donation and asset purchase at two Crozer Health locations, Brinton Lake and Broomall, according to Brennan. Penn Medicine's offer included the transfer of leases for the facilities and the acquisition of equipment and furnishings at the sites. Brennan said Penn Medicine worked with several payers to "successfully expedite substantial payments to Crozer to further stabilize" the situation. 'Our plan was to maintain uninterrupted operations at these sites, where patients can receive both primary care and care by specialists, including oncologists, cardiologists, and orthopedists," Brennan wrote. "This proposal would have retained doctors, nurses, and staff, and ensured thousands of already-scheduled appointments could proceed, avoiding care delays and sending patients scrambling for new care options farther from home." Brennan said every effort was made to prevent service disruptions and to ensure that employees could continue to be paid and maintain their employment. Despite these efforts, according to Brennan, Prospect notified Penn Medicine last week that they were rejecting the offer. 'We are deeply disappointed by this decision," he stated. "Patients will be adversely impacted and many talented health care professionals will be displaced at a time when health care needs in the community are only increasing.' In announcing its plans to shut down Crozer Health on Monday, Prospect Medical did say the ambulatory surgery and imaging centers at Brinton Lake, Broomall, Haverford and Media will remain open, but it did not say for how long. Prospect Medical said it has received interest from several unnamed parties for those sites. Brennan said Penn Medicine remains committed to the Delaware County community. 'Our doors are open to patients and to the dedicated Crozer employees who deserve better," he wrote. "We will continue working alongside local providers, community leaders, and policymakers to do everything we can to preserve and strengthen health care access in the region.' Penn Medicine consists of the University of Pennsylvania Health System and the Perelman School of Medicine at the University of Pennsylvania. Sign up here for the Philadelphia Business Journal's free newsletters, and download our free app for breaking news alerts.
