Prospect Medical Holdings offloading 2 hospitals to nonprofit

The Centurion Foundation, an Atlanta-based nonprofit organization, has inked an asset purchase agreement to acquire the CharterCare Health Partners system from Los Angeles-based Prospect Medical Holdings. 

The transaction includes CharterCare's related businesses, real estate assets, physician clinic operations and outpatient services, according to a Nov. 22 news release. QHR Health, a hospital management consulting firm, will help with the transition and provide ongoing support to Providence, R.I.-based CharterCare's senior management and board of directors.

Under the agreement, Centurion will purchase the assets and operations associated with the following hospitals and ancillary services that comprise CharterCare:

  • Roger Williams Medical Center (Providence)
  • Our Lady of Fatima Hospital (North Providence)
  • Blackstone Valley Surgicare (Johnston, R.I.)
  • CharterCare Medical Associates (Providence)
  • CharterCare Home Health Services (Providence)I
  • Roger Williams Cancer Center (Providence)
  • Southern New England Rehabilitation Center (North Providence)
  • St. Joseph Health & Dental Center (Providence)

Prospect will continue to own and operate the value-based care business in Rhode Island consisting of Prospect Provider Group, an independent physician association, and Prospect Health Services of Rhode Island, which has about 500 providers and serves 72,000 members, according to the release. Prospect will continue to work closely with CharterCare and its hospitals and ancillary entities.

Centurion said it will establish CharterCare Health of Rhode Island as a 501(c)(3) nonprofit organization to acquire CharterCare Health Partners from Prospect. After closing, CCHP and its 2,500-plus employees will become a nonprofit health system seeking to increase access and reduce the cost of care. Centurion of Rhode Island will maintain local leadership and have a board of directors that includes local healthcare leaders.

"CharterCare is excited at the potential of this proposed acquisition, which allows us to build on Prospect’s significant investment in Rhode Island healthcare,” CharterCare CEO Jeffrey Liebman said in the release. "The combination of a strong capital partner with an experienced operator of hospitals and the return to nonprofit status is very attractive."

The change in control application process is expected to be submitted to the Rhode Island Department of Health and the state attorney general before the end of 2022.

Financial terms of the deal were not disclosed.

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