Prospect Medical Strikes Deal With Connecticut Hospital Network

Bankrupt Prospect Medical Holdings Inc. announced it reached a settlement with a Connecticut-based health-care system stemming from a $435 million asset purchase agreement that was never completed.

The three hospitals that were a part of a 2022 agreement with Yale New Haven Health Services Corp. will be auctioned off, Prospect attorney Thomas Califano of Sidley Austin LLP said during a Tuesday hearing in the US Bankruptcy Court for the Northern District of Texas.

Additional terms of the deal weren’t disclosed, but details will be filed next week.

Judge Stacey G. Jernigan previously instructed the parties to mediate, which led to ...