The Rhode Island attorney general and state department of health are still reviewing the Centurion Foundation's application to purchase Providence, R.I.-based CharterCare Health Partners, part of Los Angeles-based Prospect Medical Holdings, and its two Rhode Island hospitals for $193 million.
The Atlanta-based foundation submitted a Hospital Conversions Act application to purchase the CharterCare hospital system, along with Roger Williams Medical Center and Our Lady of Fatima Hospital, on Nov. 14, according to a March 19 public meeting held by the Rhode Island attorney general and state health department.
The application has been under review since December.
"As you know, Prospect made a decision to exit the state," Jeff Liebman, CEO of CharterCare, said during the meeting. "With that, it was a robust process on request for proposal to find people who are interested in helping us. Only one viable candidate came forward, which is Centurion, to ensure that our mission would stay in place on a going forward basis."
Under Centurion's ownership, the hospitals would return to local control and governance and a nonprofit status, Mr. Liebman said.
"With the regulators' approval, we will own and operate the hospitals with Jeff and his management team running the facilities," Ben Mingle, CEO of Centurion, said during the meeting. "Our proposal will return local control and independence to the existing management team under Mr. Liebman. Under his leadership, the local board will govern these organizations to make sure they are meeting the needs of this community."
Centurion's proposal would also ensure excess facility revenue is reinvested into the communities and that on Day 1, there would be an $80 million backstop in capital reserves to fund the hospitals and serve as their financial backbone. Centurion is the only proposal that met the requirements to keep the hospitals open, operating and independent, Mr. Mingle said.
The potential of a Centurion ownership was also met with backlash from those in the community who say no money will be coming from Centurion to support the hospitals.
"These hospitals lost $88 million between fiscal year '15 and fiscal year '20," Chris Callaci, general counsel of United Nurses and Allied Professionals, said during the meeting. "They continue to lose money at an unsustainable rate. Centurion's model calls for these hospitals to stand alone and be self-sustaining. They will put no money into capital projects. They will put no money to cover the operational losses. This is a no-cash deal, 100% debt finance."
The Rhode Island attorney general and state health department will hold a second public meeting regarding the sale on March 26, with written comments accepted through March 29.