Hospital group, Prospect Holdings going back to court

Republican-American – Friday, October 25, 2024
By Paul Hughes

HARTFORD – Connecticut Hospital Association and Prospect Medical Holdings are going back to court to seal a recent filing regarding a confidential settlement over unpaid association dues and fees.

The CHA detailed some terms of the agreement when the association’s attorneys filed and then withdrew a motion Monday for a $1.4 million stipulated judgment after Prospect missed a required Oct. 1 payment.

The CHA moved Thursday to restore the case to the docket in Hartford Superior Court so the presiding judge can seal the motion that was withdrawn Monday to reopen the case for the requested stipulated judgment. A Nov. 4 hearing has been scheduled in the matter.

The CHA filed a motion Wednesday to seal its earlier motion Monday to reopen the case. The court filing said the CHA and Prospect quickly resolved the dispute over the October payment and both parties now wish to seal the motion to reopen to preserve the confidentiality of the settlement.

Judge Lisa Kelly Morgan issued an order Wednesday that said the court could not consider the motion to seal until the case has been restored to the docket. The order directed the CHA to file that motion, which its attorneys did Thursday. The CHA asked Morgan to act expeditiously on the request.

In a lawsuit filed May 14, the CHA alleged Prospect and the California-based company’s three Connecticut hospitals failed to pay $1.75 million in dues and other fees over the past two years. Prospect owns Waterbury Hospital, Manchester Memorial Hospital and Rockville General Hospital.

The CHA moved Monday for a stipulated judgment because Prospect failed to pay a $177,981 monthly payment due Oct. 1 under the terms of the settlement reached with California-based Prospect in August.

In the court filings, the CHA attorneys stated Prospect had not responded to a notice of default on Oct. 4, and it failed to make the October payment by an Oct. 18 deadline specified in the settlement. The motion requested a judgment of $1,423,853.

Subsequently, CHA attorney Kevin M. Smith filed a one-page withdrawal form Monday. There was no reason for the withdrawal of its motion for a stipulated judgment. The CHA declined to offer any additional comment on the matter.

The court filings made public the details of the confidential settlement Prospect and the CHA reached.

Prospect agreed to make an initial payment of $145,621.34 to the CHA in August, and then make nine monthly payments of $177,981 until the CHA was fully reimbursed. Prospect made its Sept. 1 payment, but then failed to make its Oct. 1 payment.

The confidential settlement gave Prospect 10 business days after receiving a default notice to make good. If not, then the CHA had the right to file a motion to reopen the case and request a stipulated judgment for the remaining amount owed the association. The settlement also provided that its terms could be disclosed as may be required to enforce the agreement.

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