The Rhode Island department of health has conditionally approved the application for Los Angeles-based Prospect Medical Holdings to sell its two safety net state hospitals to The Centurion Foundation, according to a June 20 news release shared with Becker's.
Rhode Island Attorney General Peter Neronha also approved the sale of the two hospitals, Our Lady of Fatima Hospital in North Providence, R.I., and Roger Williams Medical Center in Providence, on June 20, which included 40 unique conditions.
Prospect's Providence, R.I.-based CharterCare Health Partners owns and operates the hospitals.
Below are five things to know about some of the conditions Prospect and Centurion, a nonprofit, Atlanta-based organization, must meet under the state DOH's approval:
1. Centurion must ensure both hospitals stay in good standing with their financial obligations.
2. The hospitals' governing bodies must be maintained and feature a majority of individuals and independent board members who have hospital operations, finance, law, business, healthcare, community purpose, diversity, and investments experience. The hospitals' diverse populations must also be represented by these board members.
3. A chief restructuring officer must be hired by both parties to oversee financial management, explore strategic alternatives and manage business affairs.
4. Outstanding vendor balances and hospital necessary repairs must be settled by Prospect.
5. Healthcare services cannot be eliminated or significantly reduced at the hospitals without the state health department's approval.
"Rhode Island needs a stable network of hospitals that supports the health and wellness of every community in the state," Jerry Larkin, MD, Director of Health for the state DOH, said in the release. "In light of the historical and ongoing financial and operational challenges at the hospitals, RIDOH issued a decision today with conditions carefully developed to restore local control, help stabilize these two facilities, and help ensure that the new operators would be positioned to provide consistent, safe, high-quality care."
The application approvals come after Prospect was ordered on June 12 to pay more than $17.3 million in unpaid bills to hospital vendors within 10 days by Rhode Island Superior Court Judge Brian Stern.
Becker's has reached out to Prospect Medical Holdings for comment and will update this story should more information become available.