PROVIDENCE, R.I. (WJAR) — The parent company of Our Lady of Fatima Hospital and Roger Williams Medical Center has filed for bankruptcy, according to court filings.
Prospect Medical Holdings filed for bankruptcy Friday afternoon in federal court in Dallas.
Prospect Holdings’ hospitals, medical centers and clinics will remain open and patient care will continue without interruption, the company said. The company says it will work with relevant parties to secure the necessary funds during the Chapter 11 bankruptcy proceedings.
A spokesperson for CharterCare, which directly operates Our Lady of Fatima Hospital and Roger Williams Medical Center, issued the following statement:
The news that Prospect Medical Holdings has filed for federal bankruptcy protection has no immediate impact on CharterCare Health Partners’ operations. Our hospitals, programs and physician practices are fully operational and busy and actively working to care for patients, from emergency services to cancer care. Rhode Islanders can be confident that they will continue to receive nationally recognized quality care throughout our system of hospitals and outpatient services.
In response to the news, Rhode Island Attorney General Peter Neronha issued the following statement:
“This morning, my office was notified that Prospect has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court in Dallas, Texas. In a press release issued late last night, Prospect said: , said the proposed bankruptcy plan includes proceeding with the sale of Roger Williams and Fatima to the Centurion Foundation.
For the time being, Rhode Island hospitals will continue to operate as usual. I know that the word “bankruptcy” can be scary to many, especially when combined with the potentially unknown future of two hospitals that are vital to the survival of Rhode Island’s health care system. Masu. But I’ll say again what I said earlier this week. This Office is ready for any scenario. This filing possibility is not new to us. In fact, it’s been looming for some time. And as the possibility of filing has increased, we have stepped up our preparations. We come to Texas to represent the interests of Rhode Islanders with one goal in mind: It’s about ensuring these hospitals continue to provide quality health care to the people of Rhode Island through the work of a talented workforce.
One thing I want to be clear about is that the only thing that has changed here is the circumstances. Since 2021, my office has been deeply committed to ensuring these hospitals remain open and provide quality health care to Rhode Islanders. We will continue to help facilitate the responsible transfer of these hospitals to new owners, leaving behind the dark days of inherently destructive private equity ownership and giving safety-net hospitals a fighting chance. We are moving towards a future of giving.
This is personal to me, but it’s also true for Rhode Islanders. I have several doctors in my family who regularly educate me about the challenges of providing quality care in the current medical environment. And I certainly know the struggles of a broken system here in Rhode Island. This is difficult, but it can and should be a catalyst for Rhode Island’s leaders to seize this moment and try to offer real solutions, not just lip service.
We will share more as we learn more, but know that we are ready for this. And we’re going to see this firsthand here in Rhode Island and in the Northern District of Texas.
We will share updates as we learn more information.
Meanwhile, Sen. Sheldon Whitehouse (D-RI) also released a statement, saying:
It stands to reason that when private equity firms buy hospitals, there are negative outcomes for patients and health care providers. At the Budget Committee, we looked at what happens when private equity firms and health care providers like Prospect take over facilities and dry them up, and the end result is that in most cases patients and to hard-working hospital staff. The good news for Rhode Islanders is that the conversion process for the local Prospect-owned hospital is already well underway and should cause minimal disruption to the state’s health care system. But when making decisions about the future of our health care system, we must be clear that hospitals’ priorities must be patients and employees, not greedy private equity investors.
This is a developing story. Stay tuned to NBC 10 News for the latest information.
