PROVIDENCE – CharterCARE's legal request to close two Rhode Island hospitals if the state does not take ownership remains ongoing following Tuesday's hearing in Dallas.
Prospect Medical Holdings, the parent company of Roger Williams Medical Center and Our Lady of Fatima Hospital operator CharterCARE Health Partners, on Oct. 30 filed a motion in the U.S. Bankruptcy Court for the Northern District of Texas requesting to close the hospitals by the end of the year if the state of Rhode Island or a designee does not take them over.
"Following the hearing, the attorney general negotiated with representatives from Prospect and Centurion, among others, for about six hours," concerning the fate of Roger Williams Medical Center and Our Lady of Fatima Hospital, said Timothy Rondeau, a spokesperson for Attorney General Peter F. Neronha.
The case will continue with a hearing scheduled for Nov. 18 in Dallas with a stated topic of confirming Prospect's Medical Holdings' plan, Rondeau noted, adding that Neronha plans to attend.
Prospect declared Chapter 11 bankruptcy in January, throwing the fate of the hospitals into question. Atlanta-based nonprofit The Centurion Foundation expressed interest in buying the hospitals but has raised concern over its inability to fundraise and lack of experience in health care management.
The hospitals' closure has met strong opposition from Neronha, as well as Gov. Daniel J. McKee, and multiple labor unions and medical organizations. Neronha has advocated for Centurion's takeover but also established financial safeguards that the nonprofit must meet, which Prospect argues has stymied the sale.
Now, another party may disrupt the proceedings: Prime Healthcare, a for-profit health organization headquartered in Ontario, Calif., has stepped forward as a second potential buyer.
Laura Hart, a spokesperson for the R.I. Department of Administration, told Providence Business News on Wednesday that Richard Charest, secretary of the R.I. Executive Office of Health and Human Services, has played a leading role in forging this potential alternative. Hart declined to comment further on the status of this ongoing conversation.
Labor leaders are meanwhile urging a resolution that solidifies the hospitals' continuing operations.
On Tuesday, the United Nurses and Allied Professionals urged the state to finalize the Centurion transaction.
"The importance of keeping these hospitals open and operational cannot be understated," said Chris Callaci, general counsel for the UNAP. "There is no more time to waste. We implore state leaders to keep their eye on the ball and focus on getting the Centurion deal across the finish line rather than chasing Prime Health down a rabbit hole."
Also on Tuesday, the Rhode Island AFL-CIO called for CharterCARE to release its $6 million in charitable assets toward keeping the hospitals running.
"The stakes could not be higher," R.I. AFL-CIO President Patrick Crowley said in a statement. "If these hospitals close down, the reverberations will be felt all across Rhode Island.
"Around 2,500 Rhode Island health professionals will lose their jobs and the benefits that come with it. Working families will suffer," he continued. "Tens of thousands of Rhode Islanders will lose access to these health care facilities and other hospitals will be overwhelmed. This is an all hands-on deck situation ... The time to act is now."
(MINOR edits to tighten.)
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com
