Rhode Island Attorney General Peter Neronha is raising new concerns about the finances of CharterCARE Health of Rhode Island, the nonprofit system formed when the Atlanta-based Centurion Foundation completed its acquisition of two hospitals in the state six months ago, GoLocalProv reported Sept. 12.
Centurion on March 6 acquired North Providence, R.I.-based Our Lady of Fatima Hospital and Providence, R.I.-based Roger Williams Medical Center from bankrupt Los Angeles-based Prospect Medical Holdings. The closure of the deal came after a yearslong sales process that included multiple failed bond offerings and a bankruptcy-court-ordered deadline the buyer initially missed. The final structure relied on more than $101 million in privately financed bonds plus an $18 million reserve fund backed by the state, according to the report.
Under mandates from the attorney general and the state health department, CharterCARE must comply with more than 80 conditions of regulatory approval.
Mr. Neronha said he and his office recently reviewed the hospitals’ cash flow projections to gauge how long they can operate without a turnaround, and he’s pressing CharterCARE for a strategic plan by Sept. 15.
A CharterCARE Health spokesperson told the news outlet that the company shares data and information on a near daily basis with the attorney general’s office and the Rhode Island Department of Health. Regulators are well aware of the hospitals’ financial situation. CharterCARE Health will soon submit a detailed operational analysis as well as a comprehensive strategic plan.
“We are answering the challenges caused by years of corporate neglect and mismanagement by our former private equity owners,” the spokesperson told the outlet. “We share a sense of urgency in our pursuit of positive financial performance. We are working diligently with all our stakeholders, partners, and regulators to achieve our planned turnaround goal. We are confident that we are well on the way to reaching that goal.”
Mr. Neronha said if CharterCARE dips to 45 days cash on hand he can petition the superior court for receivership, but is “hoping we don’t get there.”
