The Rhode Island Attorney General and state department of health have rejected an initial application requesting approval for the Centurion Foundation to purchase CharterCare Health Partners from Los Angeles-based Prospect Medical Holdings, a 16-hospital system.
The materials submitted May 26 did not constitute an initial application as required under the Hospital Conversions Act, according to the state officials. "They do not respond to the most recent, publicly available application form and do not include responses to transaction-specific questions," the office of the Rhode Island Attorney General said in a May 31 news release.
Centurion, an Atlanta-based nonprofit, plans to acquire Providence, R.I.-based CharterCare and its related businesses, real estate assets, physician clinic operations and outpatient services. The deal would include Roger Williams Medical Center, a 278-bed facility, and Our Lady of Fatima Hospital, a 220-bed facility.
Centurion established CharterCare Health of Rhode Island as a nonprofit organization to acquire CharterCare. If the deal closes, CharterCare and its 2,500-plus employees will become a nonprofit system.