UConn Health to take over Waterbury Hospital on Sunday

The rebranded health system plans $225M in upgrades at the ailing facility as part of a statewide expansion.

Published on Feb. 24, 2026

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UConn Health is set to take over Waterbury Hospital on Sunday, March 1, after securing state approval for the purchase last month. The incoming owners, known as the UConn Health Community Network, will invest $225 million over three years to modernize and restore the ailing facility. UConn Health also plans to expand medical services and bring in specialists from its flagship John Dempsey Hospital in Farmington.

Why it matters

The takeover of Waterbury Hospital is part of a broader statewide expansion plan for UConn Health, which also includes plans to purchase Day Kimball and Bristol hospitals. The move comes as lawmakers in Connecticut target 'sale-leaseback' deals between hospitals and private equity firms, which have been blamed for stripping hospitals of financial capital and leading them to bankruptcy.

The details

As part of the Waterbury Hospital deal, Connecticut tax authorities have agreed to be bumped down the priority list for repayment of at least $127.8 million owed by the previous owner, Prospect Medical Holdings. UConn Health also agreed to forgo the pending 'accounts receivable,' or amounts owed to the hospital by parties including patients and insurers, as part of its $13 million bid to buy Waterbury.

  • UConn Health takes over Waterbury Hospital on Sunday, March 1, 2026.
  • A ribbon-cutting is planned at the hospital on Wednesday, March 4, 2026.

The players

UConn Health

A rebranded health system that is set to take over Waterbury Hospital and expand its services statewide.

Prospect Medical Holdings

The previous for-profit owner of Waterbury Hospital, which filed for bankruptcy.

Medical Properties Trust

An Alabama-based real estate investment trust that purchased the land under Prospect's hospitals nationwide.

Dr. Andrew Agwunobi

The CEO of UConn Health.

Dr. Aashka Shah

A researcher and resident physician at Yale New Haven Hospital who spoke about the toll of private equity on hospitals nationwide.

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What they’re saying

“Through a combination of asset-stripping, high-leverage buyouts, staff layoffs, roll-ups and sale-leaseback agreements, private equity firms strip their targets of financial capital and inevitably lead them to bankruptcy. The time is now for Connecticut to step up and stop private equity, at least in hospitals as the first step.”

— Dr. Aashka Shah, Researcher and resident physician at Yale New Haven Hospital (Stamford Advocate)

“We expect proceeds that will come from that (Waterbury) sale, along with collecting of the receivables that will probably take over the next, you know, 60 days to 90 days will fully pay the DIP financing.”

— Steven Hamner, CFO of Medical Properties Trust (Yahoo Finance)

What’s next

A ribbon-cutting is planned at the hospital on Wednesday, March 4, 2026 to mark the official takeover by UConn Health.

The takeaway

The takeover of Waterbury Hospital by UConn Health is part of a broader effort to expand the health system's reach across Connecticut, but it also highlights the ongoing debate over the role of private equity in the healthcare industry and the impact of 'sale-leaseback' deals on the financial stability of hospitals.