Eastern Connecticut Health Network, the parent company of Manchester Memorial and Rockville General Hospitals, has announced its intent to merge with Prospect Medical Holdings of Los Angeles.
Both hospitals will be acquired by Prospect Medical Holdings, according to ECHN’s Board of Directors.
Financial terms were not disclosed by ECHN.
The move expands Prospect’s reach into New England. Prospect owns and operates 13 hospitals and 40 clinics in California, Texas and Rhode Island.
Prospect is also in talks to acquire Waterbury Hospital in Connecticut, according to the Hartford Courant.
Prospect is a private, for-profit chain that has moved to take over three of the five Connecticut hospitals that had earlier agreed to merge with Tenet Healthcare. That deal fell apart late last year after state regulators proposed conditions that Tenet found unacceptable, according to the Courant.
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The terms of the acquisition are being reviewed by the ECHN board and a vote is expected this summer. Current services at both hospitals will not change, according to ECHN President and CEO Peter Karl.
“The letter of intent makes clear that Prospect would continue ECHN’s longstanding commitments of providing healthcare services and charity care to the wider ECHN community and approach healthcare with a strong coordination of regional care. Prospect also has a strong track record of providing high-quality, cost-effective services to the communities it serves, working in collaboration with physicians, medical groups, community providers, payers and other key stakeholders such as labor unions. ”