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Prospect Medical Holdings reveals DOJ investigation

July 3, 2024

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Prospect revealed the federal probe in response to a lawsuit filed against the 16-hospital system by Yale New Haven Health.

Yale New Haven sued Prospect in May to get out of a 2022 deal to buy three Connecticut-based hospitals from Prospect, claiming Prospect had violated the deal terms by mismanaging facilities, not paying staff and vendors, and failing to implement basic cybersecurity protections.

In the complaint, Yale also alleged the health system violated state and federal laws and did not resolve “government investigations into Defendants’ operation of the Businesses.”

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