Roger Williams Medical Center and Our Lady of Fatima Hospital should remain open through November, after the Rhode Island Attorney General’s office struck a deal with the hospitals’ owner to provide short-term funding.
The state will make up to $3 million available to Prospect Medical Holdings to help operate the hospitals, Rhode Island Attorney General Peter Neronha said Friday. The funds will come from the $51 million balance of the escrow account that Neronha required the hospitals’ prior private equity owner to create in 2021.
“Maintaining access to care is critical for the communities that Roger Williams and Fatima Hospital serve, as well as our statewide health care system,” Neronha said in a statement. “This temporary funding solution will ensure that, until the transfer of the hospitals to new ownership, patients will continue to receive care from the dedicated health care professionals at both facilities. But make no mistake – time is of the essence, and these hospitals will not survive without swift action.”
Prospect is in bankruptcy and it’s looking to sell Roger Williams and Fatima, both of which have lost money for years. The Centurion Foundation, a nonprofit foundation in Atlanta and the would-be buyer, has struggled to complete its financing. Another potential buyer, Prime Healthcare of California, is exploring a possible purchase.
On Oct. 30, Prospect filed a motion in bankruptcy court seeking to either close the hospitals or transfer them to state ownership. After a hearing on Tuesday in Dallas on Prospect’s bankruptcy, Neronha said he hoped to buy more time for a deal to be completed.
Ocean State Media’s Jeremy Bernfeld contributed to this story.
