Dive Brief:

Yale New Haven Health will pay Prospect Medical Holdings $45 million to exit a previous agreement to purchase three Prospect hospitals in Connecticut, according to documents filed in a bankruptcy court on Friday .

The parties agreed to a sale in 2022, but closing the deal proved highly contentious. Last year, Yale New Haven sued to get out of the deal , claiming Prospect failed to satisfactorily maintain the facilities per the asset purchase agreement. Prospect then launched its own counter suit asking the court to hold Yale New Haven to the arrangement.

The fate of the hospitals has been an open question as Prospect, which has filed for bankruptcy , works to sell assets throughout its portfolio. Attorneys for Prospect said in court filings that the current agre

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