From another prospective buyer emerging to acquire two Rhode Island hospitals to West Virginia finalizing the sale of four long-term care facilities, here are two hospital M&A moves that Becker’s reported during the week of Nov. 3:
1. Another potential buyer for two Rhode Island hospitals 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 Nov. 4 that the system was approached by state leaders regarding the potential purchase of North Providence-based Our Lady of Fatima Hospital and Providence-based Roger Williams Medical Center. The system is in the early stages of reviewing the situation.
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 that it can no longer afford to fund the facilities “on the hope that Centurion may finally obtain adequate financing” to close the deal.
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.”
2. West Virginia finalized the sale of four long-term care facilities to Marx Development Group, a privately held, full-service real estate development firm based in Fresh Meadows, N.Y.
The $60 million sale includes Hopemont Hospital in Terra Alta, Jackie Withrow Hospital in Beckley, John Manchin Sr. Health Care Center in Fairmont and Lakin Hospital in West Columbia.
As part of the deal, MDG has committed an additional $80 million to build at least three new long-term care facilities in West Virginia to replace the state’s aging and costly structures. MDG also agreed to the leasing agreement with FMRS Health Systems and the Division of Corrections and Rehabilitation on the Jackie Withrow Hospital property for a two-year term, with an option to renew annually for up to five additional years if both parties agree.
