News Summary
CharterCARE’s future remains uncertain following the bankruptcy of its parent company, Prospect Medical Holdings, which has impacted bond sales essential for hospital acquisitions. The RIHEBC is struggling to finalize a $140 million bond sale necessary for Centurion Foundation to manage CharterCARE hospitals. Concerns arise due to Centurion’s lack of experience in hospital operations and potential financial implications for Providence. This situation reflects broader challenges faced by healthcare providers in Rhode Island, signaling potential layoffs and operational changes.
Providence, Rhode Island – The future of CharterCARE is in jeopardy following the recent bankruptcy of its parent company, Prospect Medical Holdings. This development follows the sale of Prospect’s 11,000-provider network to Astrana, a healthcare firm previously known as Apollo Medical Holdings. The transfer of these providers, which spans locations in Southern California, Texas, Arizona, and Rhode Island, has raised concerns regarding the viability of CharterCARE’s bond sale efforts aimed at securing its financial future.
The Rhode Island Health and Education Building Corporation (RIHEBC) has been striving to sell bonds totaling $140,665,000. This funding is crucial to facilitate the acquisition of CharterCARE hospitals, specifically Roger Williams Hospital and Fatima Hospital, by the Centurion Foundation based in Georgia. However, efforts to finalize the bond sale have stalled, as it was projected to close on May 29, but no substantial amount of bonds has been sold.
The bonds, which received a BB- rating with a negative outlook from the credit rating agency S&P, were intended to support the transition of CharterCARE hospitals to new management under Centurion. Centurion, however, does not possess prior experience in hospital operations, raising further apprehensions about the future direction of these healthcare facilities.
Industry expert Josh Nemzoff noted that the sale of Prospect’s provider network has stripped away profitable assets, leaving the remaining bonds in a precarious position. Despite these challenges, RIHEBC spokesperson Chris Hunter confirmed that efforts to market the bonds continue, although the outlook remains uncertain.
Astrana’s acquisition of Prospect Health totals $708 million, a decrease from the original purchase price of $745 million, indicating financial pressure within the organization. This acquisition aims to enhance Astrana’s capability to provide high-quality healthcare solutions across the nation.
The struggle of CharterCARE is part of a broader trend, as several healthcare providers in Rhode Island have faced layoffs and operational closures, including significant impacts on Thundermist and Anchor Medical. Currently, CharterCARE employs approximately 2,400 full and part-time staff, more than half of whom are members of labor unions.
If the bond sale eventually succeeds and Centurion takes control of the hospitals, CharterCARE is anticipated to transition from a for-profit to a not-for-profit status. While this shift could potentially stabilize operations, it would also result in an estimated loss of $6.5 million in tax revenue for Providence and North Providence, raising concerns among local officials.
Combined, Roger Williams Hospital and Fatima Hospital operate 552 beds, have conducted over 17,000 surgeries in the current year, and managed more than 377,000 patient visits last year. The significant scale of these hospitals underscores the critical role they play in healthcare delivery within the region.
As events unfold, the financial stability of CharterCARE remains uncertain, with the implications of both the bond sale and the strategic moves made by its new parent company affecting the health institution landscape in Rhode Island and beyond.
Deeper Dive: News & Info About This Topic
HERE Resources
Rhode Island Experiences Surge in Nurse Practitioners Amid Care Shortage
Roger Williams Medical Center Introduces CARVYKTI for Multiple Myeloma Treatment
Rhode Island Introduces Comprehensive Healthcare Reform Plan
CharterCARE Hospitals Face Uncertain Future Amid Failed Bond Sale
Urgent Reforms Proposed for Rhode Island’s Healthcare Crisis
CharterCARE Health Partners Introduces Advanced Security System
Providence Community Health Centers to Lay Off Over 70 Employees
Tallulah’s Taqueria Files for Chapter 11 Bankruptcy
Additional Resources
- Patch: 3 Cats Die in Warwick House Fire
- WPRI: Crews Put Out Small Fire at Cranston Mill Complex
- GoLocal: Cranston Names New Fire Chief
- ABC6: Furnace Fire at Business in Cranston
- Turnto10: Fire Breaks Out at Cranston Home
- Wikipedia: Healthcare in the United States
- Google Search: Healthcare Regulations
- Google Scholar: Healthcare System Challenges
- Encyclopedia Britannica: Health Care
- Google News: Rhode Island Healthcare
Author: STAFF HERE PROVIDENCE 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.
