News Summary
The Centurion Foundation is struggling to finalize its acquisition of Roger Williams Medical Center and Our Lady of Fatima Hospital due to significant financial hurdles. The nonprofit must secure $165 million in bonds by the end of October as part of a deal with the bankrupt Prospect Medical Holdings. Attorney General Peter Neronha has made adjustments to the financial conditions to aid the sale, but has affirmed that the state will not provide any financial support. If the acquisition fails, it could severely impact local healthcare services.
Providence
The Centurion Foundation, a nonprofit organization based in Georgia, is currently facing significant challenges in its attempts to purchase Roger Williams Medical Center and Our Lady of Fatima Hospital in Rhode Island. The acquisition, which comes from the bankrupt parent company Prospect Medical Holdings, requires Centurion to secure $165 million in bonds. This financing was originally due in May, and time is running out as state officials have indicated that the transaction must close by the end of October to avoid falling through.
Attorney General Peter F. Neronha has emphasized the urgency of the situation and has already made several adjustments to financial conditions to facilitate the sale. Over the past 15 months, he has relaxed the cash reserves requirement at closing from $80 million in June to $45 million in August, and again to $36 million in late September. Centurion initially agreed to secure an additional $35 million within 90 days after closing but requested to waive this provision earlier in September.
Although Centurion has claimed that the sale remains on track, citing progress in securing financing due to the amendments made by the Attorney General, Neronha has firmly stated that the state will not provide any financial support for the acquisition. He previously approved the transaction under 85 strict conditions designed to protect patients, workers, and taxpayers.
Background on the Hospitals and Financial Outlook
Prospect Medical Holdings filed for bankruptcy in January and has been seeking buyers for its Rhode Island hospitals since 2022. Centurion, which has no previous experience in owning or operating hospitals, is currently the only interested party in acquiring these facilities. If the acquisition is successful, the hospitals may return to non-profit status, which could be beneficial for the local healthcare landscape.
More than 50,000 emergency room visits occur annually at Roger Williams Medical Center and Our Lady of Fatima Hospital. If the hospitals close as a result of failed negotiations, nearby healthcare facilities may experience increased strain, leading to potentially dire implications for community health services. Neronha has indicated that without secured financing from Centurion, there could be a risk of receivership or closure, exacerbating concerns among local officials and residents.
Union leaders and healthcare workers have expressed cautious apprehension regarding Centurion’s debt-driven business model. The financial stability of hospitals in Rhode Island has been further complicated by ongoing issues related to low reimbursement rates from both public and private insurance providers, making sustainable operational models difficult to achieve.
Efforts to Save the Hospitals
To mitigate the risk of hospital closures, the office of Governor Dan McKee is actively exploring strategies alongside hospital officials and legislative leaders. Alarm over potential adverse effects on healthcare services in the state has grown particularly strong, prompting discussions around possible assistance to stabilize these community hospitals long-term.
Previously, Massachusetts Governor Maura Healey directed $700 million in state funds to support hospitals at risk of closing, indicating that neighboring states are also aware of the fragile state of healthcare systems across the region. As negotiations between Centurion and stakeholders continue, the fate of nearly 3,000 employees and thousands of patients remains uncertain, as does the possibility of a viable alternative buyer should Centurion’s acquisition fail.
As the situation evolves, it is critical for all parties involved to find a resolution that ensures the continued operation of these vital healthcare facilities in Rhode Island, addressing the healthcare needs of the community while maintaining fiscal responsibility.
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Additional Resources
- Providence Journal: Hospital Sale Moving Forward
- Wikipedia: Healthcare in Rhode Island
- Rhode Island Current: Negotiations on Hospital Sale
- Google Search: Roger Williams Medical Center
- Providence Journal: Purchase Deal Amended
- Google Scholar: Healthcare Bankruptcy in Rhode Island
- Providence Journal: New Behavioral Health Unit Proposal
- Encyclopedia Britannica: Rhode Island Healthcare System
- Rhode Island Current: Sale Inches Closer to Completion
- Google News: Roger Williams Our Lady of Fatima Hospital
Author: STAFF HERE PROVIDENCE WRITER
PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
