Murphy calls for CT ban on private equity ownership in health care [View all]

Senator’s report comes as state awaits the launch of a bankruptcy auction to sell Prospect Medical Holdings’ three CT hospitals

by Katy Golvala
August 20, 2025 @ 5:00 am

U.S. Sen. Chris Murphy, D-Conn., called on Connecticut to take a “hard line” and ban private equity ownership of hospitals, citing deteriorating conditions at three facilities owned by Prospect Medical Holdings, a hospital operator formerly backed by private equity investors.

In a report the senator’s office published Wednesday, Murphy documented conversations with hospital employees in which they described Prospect’s mismanagement of its three Connecticut hospitals: Rockville General, Manchester Memorial and Waterbury Hospitals.

“The state will be much better off if we just say private equity companies shouldn’t own our hospitals,” Murphy said in an interview with The Connecticut Mirror. The senator said the report was intended to shed light on what happened with Prospect and prevent similar companies from operating Connecticut’s hospitals in the future.

Murphy’s report comes as the state awaits the launch of an auction to find new ownership for Prospect’s Connecticut facilities — one step in the sprawling company’s months-long bankruptcy proceedings. The sale process will be overseen by U.S. Bankruptcy Court in Northern Texas, where Prospect filed for Chapter 11 bankruptcy protection in January.
https://ctmirror.org/2025/08/20/chris-murphy-prospect-medical-holdings-private-equity/

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https://ctmirror.org/2025/08/20/chris-murphy-prospect-medical-holdings-private-equity/