Another prospective buyer for two Rhode Island hospitals has emerged after owner Prospect Medical Holdings sought permission from a federal bankruptcy judge to close the facilities or place them under the state’s control.
A spokesperson for Ontario, Calif.-based Prime Healthcare told Becker’s that it has been approached by state leaders regarding the potential purchase of North Providence-based Our Lady of Fatima Hospital and Providence-based Roger Williams Medical Center.
“While we are in the early stages of reviewing the situation, we are honored by the trust placed in our ability to save, invest in and improve hospitals so they can continue delivering compassionate, high-quality care to the communities they serve,” the spokesperson said.
In November 2024, Prospect received approval to sell the hospitals to The Centurion Foundation, an Atlanta-based nonprofit. However, the foundation has been unable to sell the bonds needed to finance the purchase.
Prospect, which filed for bankruptcy in January, said it is facing insolvency from ongoing losses at the hospitals. More than six months after the intended 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.
In a Nov. 3 court filing, Rhode Island Attorney General Peter Neronha said he opposes Prospect’s motion to close the hospitals or put them under the state’s control, citing his understanding that another party recently “commenced diligence on a going concern acquisition.” He further urged Prospect to”pursue this alternative (or others) aggressively.”
Centurion said in a Nov. 3 filing that it remains “committed to saving the Rhode Island hospitals and [has] worked day and night to close on the transaction.”
“Although matters outside its control have delayed or otherwise frustrated prior financing efforts, Centurion has obtained a term sheet for bridge financing that would facilitate closing in early to mid-December,” the nonprofit said in the filing.
