leonard-green-response-letter-final-7.6.20-956ad199095d6c20.pdf

Members of Congress allege that Leonard Green & Partners destabilized Prospect Medical Holdings by extracting $658 million in fees and dividends, often funded by debt. The letter claims this financial strategy, combined with failures to meet capital commitments and pension obligations in Connecticut, Pennsylvania, and Rhode Island, left the hospital system vulnerable during the COVID-19 pandemic. The authors demand the return of these funds to ensure continuity of patient care.

• Leonard Green & Partners is accused of extracting $658 million in fees and dividends from Prospect Medical Holdings, using a strategy of acquiring hospitals with debt to facilitate these payments.
• The financial health of Prospect Medical Holdings deteriorated significantly prior to the pandemic, with liabilities exceeding assets by $970 million by September 2019, compared to assets exceeding liabilities by $36.4 million in September 2015.
• In Rhode Island, Prospect allegedly failed to provide documentation proving it met a $50 million capital commitment made during the 2014 conversion of CharterCARE hospitals from non-profit to for-profit, despite receiving over $41.8 million in tax exemptions and stabilizations.
• The document reports failures regarding employee pensions and working conditions: Prospect's pension funds dropped from nearly 69% funded in September 2016 to 60% in September 2019, and workers at Eastern Connecticut Health Network reported being asked to reuse N95 masks for up to seven days during the pandemic.
• In Pennsylvania, the letter states that Prospect is terminating the pension for the Crozer-Keystone Health System by July 2021, contradicting claims that the fund had been secured.

APA

Private Equity Stakeholder Project (2020). leonard-green-response-letter-final-7.6.20-956ad199095d6c20.pdf. https://pestakeholder.org/wp-content/uploads/2020/07/Leonard-Green-Response-Letter-Final-7.6.20.pdf

Chicago

Private Equity Stakeholder Project. leonard-green-response-letter-final-7.6.20-956ad199095d6c20.pdf. 2020. https://pestakeholder.org/wp-content/uploads/2020/07/Leonard-Green-Response-Letter-Final-7.6.20.pdf.

Wikipedia

{{cite press release |author=Private Equity Stakeholder Project |title=leonard-green-response-letter-final-7.6.20-956ad199095d6c20.pdf |date=6 July 2020 |url=https://pestakeholder.org/wp-content/uploads/2020/07/Leonard-Green-Response-Letter-Final-7.6.20.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{privateequitystakeholderproject2020leonardgreenresponseletterfinal7620956ad199095d6c20pdf, author = {{Private Equity Stakeholder Project}}, title = {{leonard-green-response-letter-final-7.6.20-956ad199095d6c20.pdf}}, publisher = {Private Equity Stakeholder Project}, year = {2020}, month = jul, url = {https://pestakeholder.org/wp-content/uploads/2020/07/Leonard-Green-Response-Letter-Final-7.6.20.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }