Tolland, Conn. – Prospect Medical Holdings, Inc. has reached an agreement to sell the Woodlake at Tolland Nursing and Rehabilitation Center real estate and building to a buyer who will simultaneously lease them back to Prospect for a term of up to 32 years. Prospect will continue to operate the business within this building.
The transaction is expected to close within 60 days, subject to closing conditions and Connecticut regulatory approval.
“The transition of the real estate and building to new ownership will be seamless to our patients, physicians, staff and community members,” said Michael Collins, interim CEO of Eastern Connecticut Health Network. “Prospect remains fully committed to continuing to operate Woodlake at Tolland in accordance with the terms of the asset purchase agreement.”
Prospect will continue to be responsible for all improvements and upgrades at Woodlake at Tolland that are required under the asset purchase agreement. “In fact, we are committed to going above and beyond those requirements to help ensure the quality of care and comfort of our patients,” said Collins.
The change of ownership must be approved by the Connecticut Department of Public Health. The buyer of the real estate and building is MedEquities Realty Trust, which specializes in similar sale/leaseback arrangements with hospitals and health systems. The financial terms will remain confidential until they become part of the public record.
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About Eastern Connecticut Health Network (ECHN)
ECHN is a community healthcare system serving 19 towns in eastern Connecticut. Its network of affiliates includes Manchester Memorial Hospital, Rockville General Hospital, Woodlake at Tolland Rehabilitation and Nursing Center, Eastern Connecticut Medical Professionals, Women’s Center for Wellness, Visiting Nurse & Health Services of CT, Eastern Connecticut Cancer Institute, and more. Visit our website at www.echn.org for more detailed information about the health system.
About Prospect Medical Holdings, Inc.
Prospect Medical Holdings, Inc., a growing healthcare services company, offers a unique and innovative healthcare delivery model, known as Coordinated Regional Care, which emphasizes coordination of care and population health management, with an emphasis on wellness and preventive care. CRC helps coordinate quality care for patients through integrated networks of primary and specialty physicians, in affiliation with hospitals, clinics, other community-based providers and health plans. Prospect owns and operates 20 hospitals, as well as over 165 clinics and outpatient centers. Prospect also manages the provision of healthcare services for more than 435,000 members enrolled in its networks of over 11,000 primary care physicians and specialists. Prospect’s operations are located in diverse areas in California, Connecticut, New Jersey, Pennsylvania, Rhode Island and Texas. For more information, visit www.pmh.com.