Home Economy Government House panel advances bill to facilitate sale of Roger Williams, Fatima hospitals

House panel advances bill to facilitate sale of Roger Williams, Fatima hospitals

By

Christopher Allen

-

02/06/2026

Marvin L. Abney — LEGISLATION FILED BY Rep. Marvin L. Abney, left, creating a supplemental state budget reserve account to help facilitate the sale of Roger Williams Medical Center and Our Lady of Fatima Hospital was advanced by the House Committee on Finance on Friday. / COURTESY MARVIN L. ABNEY

PROVIDENCE – The House Committee on Finance advanced legislation on Friday that could facilitate the sale of Roger Williams Medical Center and Our Lady of Fatima Hospital. Sponsored by committee Chairman Marvin L. Abney, D-Newport, the bill was approved by the committee in a unanimous vote. The bill would make revised appropriations of $18 million

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PROVIDENCE – The House Committee on Finance advanced legislation on Friday that could facilitate the sale of Roger Williams Medical Center and Our Lady of Fatima Hospital. Sponsored by committee Chairman Marvin L. Abney, D-Newport, the bill was approved by the committee in a unanimous vote. The bill would make revised appropriations of $18 million to create a debt service reserve fund to support the sale of the hospitals to the Centurion Foundation by providing "credit enhancement" to an estimated $80 million in Hospital Financing Revenue Bonds to be issued by the Rhode Island Health and Educational Building Corp. The state will have no obligation to replenish the debt service reserve fund, which will only be accessible if Centurion were to default on its debt payments and exhaust its primary reserve. The Senate Committee on Finance is scheduled to take up its version of the bill on Feb. 10. A transfer to state ownership was set for Jan. 30 but was stalled after a federal bankruptcy judge overseeing the Chapter 11 proceedings of the facilities’ owner, Prospect Medical Holdings, approved a request by Attorney General Peter F. Neronha to extend that deadline to Feb. 27 to give the Centurion Foundation more time to close the transaction. Neronha can continue to draw from the attorney general’s hospital fund to cover up to $2.5 million in cash flow losses, bankruptcy costs, and professional services and fees needed to run the hospitals through February. Gov. Daniel J. McKee's fiscal 2027 budget proposal did not include money for the hospitals, though he supports the $18 million request, telling lawmakers in written testimony that the legislation to assist the "critical safety net hospitals" includes "numerous safeguards and conditions" that balance state support and taxpayer protections. Centurion executives have said state support to secure the bonds is crucial for attracting investors. With more than 500 hospital beds and 55,000 annual emergency room visits combined, the hospitals are losing roughly $45 million a year. Meanwhile, the state is also evaluating “alternative proposals” in the event that Centurion is unable to finalize the deal. The House Health and Human Services Committee will take up a separate bill sponsored by Rep. Jacquelyn Baginski, D-Cranston, that would amend the Hospital Conversions Act to allow for a one-year expedited review of applications from other potential purchasers. Christopher Allen is a PBN staff writer. You can contact him at Allen@PBN.com.