PROVIDENCE – Disagreements among employees at Roger Williams Medical Center and Our Lady of Fatima Hospital on The Centurion Foundation’s proposal to purchase the two hospitals from Prospect Medical Holdings Inc. and establish a nonprofit health system were center stage at a public hearing on the transaction Tuesday.
Christine Godin, clinical nurse director of the emergency department at Fatima Hospital, spoke in favor of the transaction citing how struggles to find funds for necessary resources have hindered the hospital.
“Every single day, I struggle with this one question: Would I recommend Our Lady of Fatima to my family and friends?” Godin said, noting she’s been waiting three years for new floors in the emergency department. “Over the last seven years my answer could change day to day.”
Godin was one of several Roger Williams and Fatima Hospital employees to speak during the two-hour meeting Tuesday. The meeting was the second of two public comment sessions Attorney General Peter F. Neronha’s Office and the R.I. Department of Health – the agencies that oversee hospital conversions in the state – scheduled to receive feedback on Centurion’s Hospital Conversion Act application to purchase Our Lady of Fatima Hospital in North Providence and Roger Williams Medical Center in Providence from Prospect and establish a new nonprofit health system.
Dr. Peter Pizzarello, an orthopedic surgeon at Fatima Hospital, agreed with Godin.
"The current status really just can't continue, it's a really challenging situation. ... Centurion's application to purchase the hospitals is a lifeline," Pizzarello said, adding he was working at Memorial Hospital when it was closed because of financial struggles. "How often do we get a lifeline? How often do we get a second lifeline? In my experience, not very often."
But hospital employees who opposed the transaction still had a strong presence.
Several members of United Nurses and Allied Professionals, a union representing more than 1,000 workers at the two hospitals, restated their concerns about Centurion’s proposal that were raised during the first meeting.
“We will struggle with Prospect, but like I said last week, we will fail with Centurion,” said Cindy Fenchel, UNAP president of local 5110 service workers, to a round of applause.
At the center of the union’s opposition is Centurion’s business model as it plans to finance the transaction primarily through issuing around $133 million in bonds. They also said important details, including financial information, fees that would be charged and services that would be offered, have been redacted from the publicly released version of Centurion’s Hospital Conversions Act application.
”We all know to do the best for patients; we need to know how we can proceed – there needs to be transparency in this transaction. The redacted parts of the application, in my opinion, raises a bunch of red flags. ...What is Centurion trying to hide?” said Marie Grundy, a registered nurse at Fatima Hospital. "And with this acquisition, no funds are forthcoming. Instead, Centurion wants us to borrow an exorbitant amount of money to exist. I'm sorry that I can't wrap my head around this logic."
North Providence Mayor Charles A. Lombardi also spoke during the meeting and raised concerns about how the transaction would increase taxes for residents. More specifically, Lombardi said the town has entered into a 10-year tax stabilization agreement with CharterCARE Health Partners, which operates the hospitals, that is set to expire at the end of 2025, but if the Centurion transaction were to be approved, taxes would increase in 2026.
“This proposal needs to be fair to our taxpayers,” Lombardi said. "I want to assure you we want to be a partner in this merger or sale. But at what cost to the taxpayers of North Providence?"
Similar to the first public comment session held on March 19, executives from CharterCARE and Centurion began the meeting explaining their support for the proposal.
”We provide extremely important services in, candidly, some underserved areas,” said Jeffrey H. Liebman, CEO and president of CharterCARE Health Partners, emphasizing the fact that Centurion’s proposal is the only viable path to keep the hospitals open. “There's no other organization with the amount of resources like this to help us that has come forward.”
Ben Mingle, president of The Centurion Foundation, also spoke of the Georgia-based nonprofit’s background in financing health care transactions. In total, Mingle said Centurion has completed more than 25 transactions, financing 36 facilities across the U.S. with transactions totaling more than $1 billion.
”We are experienced and have a proven track record ensuring other charities and charitable institutions advance their mission through our work,” Mingle said, adding that the organizations have been working together for two years on the proposal. “We have very closely analyzed the services and finances of these hospitals and put together a strong plan that shows the pathway for financial viability for both Roger Williams and Our Lady of Fatima to be independent and to remain and be an independent self-sustaining health system.”
Both Mingle and Liebman also addressed concerns over Centurion’s business model. Mingle reiterated the fact that the proposal offers $80 million on CharterCARE's balance sheet once the transaction is finalized and said Centurion plans to use all of its resources to ensure the hospitals' success.
Union members have also continually raised flags about the lack of progress in negotiations with Centurion. Mingle said at the beginning of the session that Centurion has provided adequate information about a comprehensive health insurance plan that is equal to or exceeds the existing plans. But Chris Callaci, general counsel for UNAP and who is the union’s chief negotiator, used part of his public speaking time to dispute this claim, stating that he has received very little information from Centurion about their benefits plans.
Members of the public have until March 29 to submit or amend their existing written comments. According to the Hospital Conversions Act, state regulators have until June 11 to approve or deny the proposed transaction with conditions.
Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.