Prospect Medical’s Bankruptcy Leaves Hundreds Without Malpractice Compensation After Years of Neglect and Debt-Driven Expansion

Connecticut’s Waterbury Hospital, where Bob Dorn died, was among the hospitals operated by Prospect Medical, a for-profit hospital chain that had promised to fund its own malpractice costs. The company’s collapse has exposed a systemic failure to protect patients and compensate victims of negligence.

Prospect Medical’s rapid expansion—fueled by debt—transformed the small California-based company into a 17-hospital system spanning six states. However, this growth came at a severe cost. Investigations revealed widespread issues, including dangerous medical care, poor infection control, and unsanitary facilities. The company also defaulted on over $135 million in taxes owed to state and local governments and failed to pay vendors for essential equipment, services, and supplies. In a particularly egregious move, Prospect shuttered four safety-net hospitals in a Philadelphia suburb, despite promises to keep them open, resulting in the layoffs of thousands of employees.

Now, more than a year after Prospect Medical filed for bankruptcy in January 2025, a new layer of harm has emerged. Court filings show that Prospect had repeatedly assured patients and doctors that it would provide malpractice coverage. However, the company set aside no money to pay these costs—or to compensate injured patients. As a result, hundreds of people with pending malpractice cases against Prospect may never receive meaningful redress.

Bob Dorn’s Death Highlights the Human Cost

One of those affected is Pamela Dorn, whose lawsuit against Prospect Medical has stalled. She may never hold the company accountable for the negligent care she says led to her husband’s death.

Bob Dorn, 75, suffered from advanced dementia and required a liquid diet. In March 2022, he became aggressive and was taken to Prospect’s emergency room in Waterbury, Connecticut. According to Dorn’s lawsuit and an interview with her, medical staff sedated him and left him unattended with a meal of macaroni and cheese and broccoli. Hospital staff later found him choking and struggling to breathe. He was intubated and taken to the intensive care unit but never regained consciousness. His death certificate attributed his death to asphyxia caused by food blocking his airway.

“I didn’t want the same thing to happen to somebody else,” Dorn said. “How a hospital system operates without malpractice insurance is beyond me. It’s irresponsible.”

In court filings, attorneys for Prospect Medical and the ER doctors have denied the negligence allegations.

Self-Insurance: A Risky Gamble with Patients’ Lives

The situation is further complicated by the fact that Prospect Medical was not legally required to prove it could cover malpractice costs. Like many healthcare companies, Prospect had chosen to “self-insure” against these claims. Instead of paying premiums to a commercial insurer, the company pledged to pay directly for the legal defense of its facilities and doctors, as well as any settlements or trial awards. However, with Prospect now in bankruptcy, this pledge has proven hollow for hundreds of victims.