Medical Properties Trust (MPW) said Monday that Yale New Haven Health System reached a settlement deal to pay $45 million to Prospect Medical Holdings over the purchase of three facilities that Yale agreed to acquire in 2022.

Under the terms of the settlement, Medical Properties said it and Prospect Medical will release Yale of any obligation to acquire the facilities. Medical Properties said the settlement is subject to approval by a bankruptcy court that is overseeing Prospect's Chapter 11 case.

The real estate investment trust said it expects the $45 million to be used to decrease an outstanding loan to Prospect.

Prospect separately agreed to sell two of the Connecticut hospitals to a new operator and is in talks for the third, Medical Properties said.

Medical Properties said the Yale payment and sale proceeds, combined with earlier transactions in California, are expected to fully repay the $105 million DIP loan, leaving only a conditional commitment of up to $30 million secured by assets.

MPT also said it sold two hospitals in Phoenix, Arizona for about $50 million under a tenant purchase option. The facilities produced minimal rental income and were among properties re-tenanted in 2024 following a settlement with Steward Health Care, according to the company.

The company said proceeds from the Yale settlement, Connecticut and California transactions, and the Arizona sales will be used for debt reduction, new investments, shareholder returns, and general corporate purposes.