Prospect Medical Holdings and Rhode Island Attorney General Peter Neronha reached a deal that will keep two of the state’s hospitals open through January as The Centurion Foundation works to secure financing to acquire the facilities, The Providence Journal reported Dec. 5.
Under the agreement, a hospital fund set up in 2021 by the attorney general will be used to cover operating expenses, according to the report. The account has about $51 million and Mr. Neronha told the outlet that after expenses, it will hold no less than $35 million.
Los Angeles-based Prospect, which filed for Chapter 11 bankruptcy protection in January 2025, said Oct. 30 it faces insolvency from ongoing losses at the hospitals and is seeking court permission to close the facilities or put them under the state’s control. More than six months after the target closing date, the company said it can no longer afford to fund the facilities “on the hope that Centurion may finally obtain adequate financing” to close the deal.
Prospect received approval in February to sell North Providence, R.I.-based Our Lady of Fatima Hospital and Providence, R.I.-based Roger Williams Medical Center to The Centurion Foundation, but the Atlanta-based nonprofit has been unable to sell the bonds needed to finance the purchase.
Centurion said in a Dec. 1 court filing that it remains “steadfastly” committed to completing the transaction. The foundation said Bank of America Securities has joined Barclays as a co-placement agent for the required bond financing that is scheduled to close on or around Jan. 15, 2026.
Mr. Neronha said that if Centurion is unable to complete the transaction, the state needs to “be prepared for a contingency,” according to the report.
“The contingency could be closure,” he said, according to the report. “That contingency, it could be a mechanism by which [the hospitals] could be kept open through something like a receivership here in Rhode Island. But we are a long way from that point now. We’ll see where we are in January.”
Ontario, Calif.-based Prime Healthcare was approached by Rhode Island officials in November regarding the potential purchase of the facilities, but a spokesperson told Becker’s Dec. 4 that the system has decided not to pursue the acquisition.
