Connecticut’s shrinking roster of independent hospitals could soon lose one more.
California-based for-profit hospital operator Prospect Medical Holdings, which already owns Eastern Connecticut Health Network and Waterbury Hospital, said Tuesday it is exploring a “strategic affiliation” with Day Kimball Healthcare, the Putnam-based health system anchored by Day Kimball Hospital as well as outpatient and community facilities along the I-395 corridor.
The private-equity-backed Prospect and Day Kimball said they intend to sign a definitive agreement this fall. The combination would require state and federal regulatory approvals.
“An affiliation with Prospect would strengthen the level of care and provide Day Kimball with the support it requires to continue to provide high quality care and to invest in and expand its facilities, staff and services,” said Joseph M. Adiletta, Day Kimball’s board chairman. “[Prospect] will ensure Day Kimball will remain a local, community hospital, providing necessary capital to enhance services, preserving the level of quality care and maintaining our charitable mission.”
No financial details were disclosed, but the parties said Day Kimball would remain a not-for-profit hospital.
That would be unique for Prospect, which is a for-profit operator of 20 hospitals in six states.
Prospect entered the Connecticut market four years ago through the acquisition of Waterbury Hospital and the Eastern Connecticut Health Network (ECHN), which includes Manchester Memorial Hospital and Rockville Hospital.
The deals converted those three hospitals from not-for-profits to for-profits. At the time, Sharon Hospital was Connecticut’s sole for-profit hospital (it converted back to a not-for-profit the following year when it was acquired by Vassar Health).
In a statement Tuesday afternoon, Prospect confirmed that none of its 20 existing hospitals are not-for-profits, though it noted that two of its hospitals are in joint-venture arrangements with a legacy not-for-profit.
“Prospect has demonstrated a flexible approach to acquisitions and affiliations,” the Prospect said. “Each transaction is tailored to the needs of the hospital with which Prospect is affiliating as well as to the needs of the community served by the facility. This potential strategic affiliation with Day Kimball Healthcare is consistent with that approach.”
Day Kimball, which previously explored an affiliation with Hartford HealthCare, has more than 1,100 employees and nearly 300 associated physicians, surgeons and specialists.
This story has been updated to include additional information.
