Los Angeles-based Prospect Medical Holdings has been ordered to pay more than $17.3 million of unpaid bills to hospital vendors within 10 days by Rhode Island Superior Court Judge Brian Stern on June 12, according to court documents obtained by Becker's.
The news comes after Prospect sued Yale New Haven Health on June 6 and alleged that the Connecticut health system failed to comply with its contractual obligations to acquire Waterbury (Conn.) Hospital and Eastern Connecticut Health Network in Manchester, Conn.
Providence, R.I.-based CharterCare Health Partners, part of Prospect Medical Holding, owns and operates two Rhode Island hospitals: Our Lady of Fatima Hospital in North Providence, R.I., and Roger Williams Medical Center in Providence.
Prospect has hit roadblocks in recent months in trying to sell CharterCare and the two hospitals. An application submitted by The Centurion Foundation in December to purchase the assets remains under review by Rhode Island's attorney general and department of health.
In 2021, Attorney General Peter Neronha set multiple conditions for the hospital to meet in a deal approved under the Hospital Conversion Act.
Prospect was required to put $80 million in either escrow or letter of credit to ensure that its two hospitals would continue to operate. It had to comply with the conditions for five years, according to the documents.
However, by November of 2023, Prospect owed over $24 million to its hospital vendors and certain elective surgeries were being canceled due to delays in surgical supply orders, according to a lawsuit filed by Mr. Neronha in 2023.
"Prospect Medical Holdings must comply with our 2021 HCA decision, including paying $17 million within the next 10 days for outstanding invoices owed to vendors of Our Lady of Fatima Hospital and Roger Williams Medical Center, to facilitate the continuation of safe, reliable patient care at these two essential safety-net hospitals," Mr. Neronha said in a June 12 news release. "The decision unambiguously and correctly concludes that Prospect repeatedly failed to comply with important conditions set in our 2021 decision."
Prospect did not have a comment for Becker's at this time.