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Neronha announces new, revised conditions on sale of Roger Williams Medical Center and Fatima Hospital

By

Katie Castellani

-

07/31/2025

Our Lady of Fatima Hospital — AS THE CENTURION Foundation, the potential new owner of Roger Williams Medical Center and Our Lady of Fatima Hospital, struggles to raise funds needed to close the sale, Attorney General Peter F. Neronha announced Thursday a series of amendments to the conditions he placed on the deal. Pictured is Fatima Hospital. / PBN FILE PHOTO/MICHAEL SALERNO

PROVIDENCE – As the potential new owner of two safety net hospitals struggles to raise funds needed to close the sale, Attorney General Peter F. Neronha announced Thursday a series of amendments to the conditions he placed on the deal. In June 2024, Neronha’s office and the R.I. Department of Health approved the sale of

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PROVIDENCE – As the potential new owner of two safety net hospitals struggles to raise funds needed to close the sale, Attorney General Peter F. Neronha announced Thursday a series of amendments to the conditions he placed on the deal. In June 2024, Neronha’s office and the R.I. Department of Health approved the sale of Roger Williams Medical Center in Providence and Our Lady of Fatima Hospital in North Providence, as part of the CharterCARE Health Partners system, from now bankrupt Prospect Medical Holdings to The Centurion Foundation. This decision came with dozens of conditions meant to ensure the financial viability of the hospitals. The decision was first amended in November 2024, and again on Thursday. The second round of changes is meant to “accommodate a modified bond financing strategy in light of challenges in the bond market” while also establishing safeguards to protect the CharterCARE system, Neronha’s office said. Prospect Medical Holdings took over ownership of both Roger Williams and Fatima when it became the majority owner of ChaterCARE Health Partners in 2014. If the Centurion sale goes through, the system would be referred to as the New CharterCARE System, according to a news release announcing the new amendments. "While this is a complicated process, our goal is simple: make sure our safety net hospitals are in the best position possible to serve our communities for as long as possible,” Neronha said in a statement. Specifically, the revised conditions require Centurion to have $45 million in cash on hand to take over the hospitals, down from the previous $80 million. But because this would weaken CharterCARE’s cash position at the close of the sale, Neronha added a series of new conditions to protect the hospitals. These include requiring Centurion to secure $35 million within 90 days of the transaction closing, invest $50 million in capital expenditures and grant Neronha’s office the ability to petition to put the hospitals in receivership if needed. The new conditions also offer Neronha’s office more oversight over how the hospitals’ operations and finances are managed. Also, Neronha’s office must be notified in several circumstances if the Hospital Fund falls below $50 million if CharterCARE’s days of cash on hand fall below 40 days, 30 days or if the system falls behind on its bond obligations. “All Rhode Islanders deserve quality, accessible, and affordable health care. The survival of these safety-net hospitals is absolutely critical to the future of Rhode Island’s health care system; we cannot afford to lose them,” Neronha said. “These new and amended conditions provide a better path forward by which these hospitals can survive – and perhaps thrive.” Roger Williams and Fatima have been strapped for cash for years. And their owner, Prospect Medical Holdings, a California-based private equity company, filed for Chapter 11 bankruptcy on Jan. 11 in the midst of selling the hospitals to Atlanta-based Centurion. But Centurion has been struggling to sell the bonds that are crucial to closing the sale. Otis Brown, a spokesperson for Centurion and CharterCARE Health Partners, said the organizations appreciate the amendments to the hospital sale from Neronha and RIDOH. “This is an important step forward as we move through the bond and financing process and [finalize] the sale to help secure the future of these essential hospitals and 2,400 employees,” Brown said.