The sale of Los Angeles-based Prospect Medical Holdings’ two Rhode Island hospitals has fallen through after Atlanta-based nonprofit The Centurion Foundation missed the bankruptcy court-ordered Jan. 15 deadline to purchase them.
“Centurion is free to continue to try to close, but we now have work to do and a deadline by which to do it,” Rhode Island Attorney General Peter Neronha said in a statement shared with Becker’s. “My office is working hard in consultation with other state leaders and I expect you will hear more about that this week.”
Bankrupt Prospect and Mr. Neronha reached a Dec. 8 agreed order, obtained by Becker’s, to keep North Providence, R.I.-based Our Lady of Fatima Hospital and Providence, R.I.-based Roger Williams Medical Center open through January while Centurion worked to secure funds to purchase the hospitals.
Centurion also said in an early December court filing that it was “steadfastly” committed to completing the transaction of the facilities.
The two hospitals will be transferred out of Prospect’s hands by Jan. 30 under its agreement with Mr. Neronha if Centurion does not move forward with its purchase. The agreement also requires the transfer terms to be agreed upon between Prospect and Mr. Neronha.
“[After] the transfer date, the debtors’ estates [Prospect] shall have no continuing obligation or liability for the post transfer date operations or other disposition of the Rhode Island hospitals,” the agreement said.
In early November, Ontario, Calif.-based Prime Healthcare had been approached by state leaders to potentially purchase the two hospitals; however, those discussions ended in early December.
Becker’s has also reached out to The Centurion Foundation for comment and will update this story should more information become available.
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