Prospect Medical, Neronha square off on Fatima, Roger Williams Medical Center

[TexasTowelie]

Prospect Medical Holdings, the Los Angeles-based parent company of CharterCARE Health Partners, is threatening to close Our Lady of Fatima Hospital in North Providence and Roger Williams Medical Center in Providence due to financial conditions sought by Attorney General Peter Neronha as part of an ownership change.


According to a statement from Prospect, Neronha wants Prospect to put between $120 million and $150 million in escrow “to purportedly ensure the financial viability of the hospitals,” according to spokesman Bill Fischer.

“The imposition of such an escrow is unreasonable, unacceptable, and unprecedented,” Fischer said in a statement. “The demand for such an escrow as a condition to continue to do business in RI would leave Prospect with very little choice but to initiate a wind down of its RI operations. Everyone involved in this transaction needs to understand that there are dire consequences for Rhode Island’s 3rd largest hospital system if this transaction is not approved.”

Neronha, however, pointed to concerns by a major accounting firm -- highlighted earlier this week by The Public's Radio -- showing that Prospect and its Rhode Island hospitals face financial viability risks. Prospect maintains it is well capitalized, with yearly revenue of $2.7 billion.

Neronha is expected to release Friday his decision on a proposal to allow two partial owners of Prospect Medical to take full ownership of the company, which operates 17 hospitals across the U.S.

Read more: https://thepublicsradio.org/article/prospect-medical-says-neronhas-conditions-could-close-fatima-roger-williams