‘We're not in a good place': R.I. attorney general looks to speed up sale of Roger Williams, Fatima hospitals
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Prospect Medical Holdings, a for-profit hospital chain that operates safety-net hospitals including Roger Williams and Fatima,
Since late 2022, Prospect has been trying to sell its two Rhode Island hospitals. In June 2024, Rhode Island state regulators approved the terms of a deal to sell them to The Centurion Foundation, which is based in Georgia. Their approval came
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Centurion's counsel approached Neronha this month to negotiate. 'Centurion was having difficulty selling bonds for that initial hospital funding bucket,' he said.
Under the revised conditions, Centurion will need to have $45 million in cash to take over the hospitals, which is down from $80 million that was previously required in Neronha's June 2024 conditions. In addition, Centurion has agreed to secure up to $35 million within 90 days of closing.
'This is an important step forward as we move through the bond and financing process and finalizing the sale to help secure the future of these essential hospitals and 2,400 employees,' said Otis Brown, a spokesperson for the Rhode Island hospitals and for The Centurion Foundation.
Neronha will require that Centurion and the new system formed after the sale not contest his office if it files a petition to appoint a receiver of the new system if it fails to pay any principal or interest under any future bond financing.
Prospect also owns hospitals in Pennsylvania and three hospitals in Connecticut. The hospitals in Pennsylvania are being sold off as real estate assets, because they could not identify a buyer, said Neronha. The fate of the hospitals in Connecticut 'remain up in the air,' Neronha said.
While Prospect has struggled to sell off its hospitals in other states, the challenges it faces in Rhode Island should be seen in the larger context of how its difficult to operate health care businesses in the state, Neronha said.
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'We are not in a good place,' said Neronha.
Alexa Gagosz can be reached at
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