When Prospect medical holdings claimed bankruptcy in earlier this year, it didn’t just jeopardize three Connecticut hospitals, it left local communities betrayed, patients vulnerable and the state responsible for over $67 million dollars.
According to CBS News reports, Prospect Medical’s CEO Sam Lee took home about $90 million while the shareholders in the investment group that owns Prospect Medical Holdings; Leonard Green were paid $257 million. Connecticut is now scrambling in bankruptcy court to recover what it can from a company that systematically drained resources from our healthcare system while making millions in profits for their investors.
The financial collapse exposed the lack of accountability by health care administrators, Connecticut State Bill SB-7 could have addressed this issue, however it failed to pass.
At Waterbury Hospital, staff have reported deteriorating infrastructure, outdated equipment, and safety hazards that compromise patient care. Waterbury Hospital, owned by Prospect Medical Holdings was hit by a cyber-attack last summer and their hospital was in chaos. The Emergency Department was required to divert patients, necessary surgeries were postponed or cancelled and staff struggled to manage care with paper records.
The financial struggles and security breach revealed a deeper problem; a for-profit healthcare system with administrative leadership that lacked preparedness, coordination, and accountability. This crisis underscores why legislative reform like SB-7 is urgently needed
When leadership fails, it’s not just a business issue, it’s a public health emergency. If a nurse or physician made a decision that harmed a patient, their professional license would be reviewed, and possibly revoked. Under current law, the administrators making these decisions; those responsible for staffing, budgeting, emergency preparedness, and facility maintenance are not required to hold a license in Connecticut. Senate Bill 7 changes that.
Even U.S. Senator Chris Murphy, a member of the Senate’s Health, Education, Labor, and Pensions Committee, has spoken out forcefully against the damage caused by Prospect Medical Holdings. Murphy strongly criticized Prospect Medical’s practices, stating the company prioritized investor profit at the expense of patient care and community benefit. In a roundtable Senate hearing, he called Prospects management of Connecticut hospitals “an abomination” and accused them of running facilities “into the ground.”
Prospect Medical’s bankruptcy may be the most high-profile case of hospital mismanagement in Connecticut, but it is far from the only one. According to a recent article in the Hartford Courant, recent violations at Trinity Health-owned Saint Francis Hospital where the state Department of Public Health cited two “immediate jeopardy” situations, highlight that even established hospitals are failing to put patients first.
The nurses at Saint Francis Hospital in Hartford faced a different crisis from Waterbury Hospital — chronic understaffing. Nurses report unsafe patient loads, long wait times, and burnout. According to Department of Public Health reports, the Emergency Department was staffed with eight nurses when their census required 21 nurses. These are not isolated incidents. They’re symptoms of a system where those in charge of staffing, budgeting, and emergency planning are not required to meet any formal standards.
Connecticut’s Senate Bill 7 offered a solution. It would require health care administrators to be licensed, similar to the clinicians they supervise. This bill would require passing a state licensure exam, holding a relevant degree in healthcare, and demonstrating knowledge of health care law, ethics, and emergency protocols by attending formal training. Licensure would hold decision-makers accountable. Administrators make decisions that shape patient care, safety and hospital longevity. However with todays laws, they can do so without any formal credentialing. Senate Bill 7 would have changed that and would give the Department of Public Health the authority to investigate misconduct and revoke licenses when necessary.
Connecticut needs healthcare administrators who are trained, tested, licensed and held accountable. As a registered nurse I would never be allowed to care for patients without training and licensure and I believe health care administrators should be held to the same standards. Patients should be placed over profits. Senate Bill SB-7 would ensure that those managing our health care institutions meet the same professional standards we expect from those delivering care.
Senate Bill 7 was introduced in early 2025 to require licensure for healthcare administrators, but it ultimately stalled in the legislature and was not passed. The conversation should not end here. It is a critical time for the public to speak up and contact their local lawmakers. Ask them to revisit and reintroduce this bill in the next legislative session and support stronger accountability for the administrators that make decisions for Connecticut hospitals as we cannot afford to let this opportunity slip away and jeopardize our other healthcare facilities.
Our health care workforce, our patients, and our communities deserve better. It’s time to hold administrators accountable and ensure that the people making the most critical decisions in our hospitals are trained, licensed, and acting in the public’s best interest, not solely protecting their profits.
Kelly DeJoseph RN lives in Wolcott.