Los Angeles-based Prospect Medical Holdings has been issued immediate compliance orders for two hospitals it owns and operates in Rhode Island as vendors remain unpaid and patient surgeries are subsequently canceled.
In October, at least 19 elective surgeries at the Providence-based Roger Williams Medical Center and North Providence-based Our Lady of Fatima Hospital were canceled because the required equipment was not available due to Prospect not paying vendors, according to a Nov. 9 news release from the department.
Prospect Medical has been sweeping patient care revenue from the two facilities on a daily basis and then returns an allowance back to the hospitals, which has proven inadequate, the release said.
The immediate compliance order requires Prospect Medical to hire an independent fiscal monitor and cover all hospital costs, plus multiple other requirements.
"The healthcare providers at Roger Williams Medical Center and Our Lady of Fatima Hospital are amongst the best in the state," said Utpala Bandy, MD, interim director of health at the Rhode Island Department of Health. "People receive very high-quality care at these hospitals. However, these facilities need more consistent support from their corporate owners."
"The letter we received from the Department of Health referencing this action was delivered simultaneously with the issuance of their press release," Prospect said in a statement provided to Becker's. "We have no comment as we have not had an opportunity to review the letter and its implications."