Copyright The Boston Globe
PROVIDENCE — Another health care system may be eyeing two cash-strapped hospitals in Rhode Island as Prospect Medical Holdings, their bankrupt parent company based in California, recently threatened to close the hospitals down. House Speaker K. Joseph Shekarchi told The Boston Globe Tuesday that Prime Healthcare has shown interest in acquiring Our Lady of Fatima Hospital in North Providence and Roger Williams Medical Center in Providence, both of which are operating at a loss. “I’ve heard from stakeholders that Prime [Healthcare] is interested, and Prime has been doing due diligence on both hospitals,” said Shekarchi in an exclusive interview. A motion filed Monday by Rhode Island Attorney General Peter F. Neronha also notes the state is aware that “another operator recently commenced diligence” on the two hospitals. Advertisement “Prospect should pursue this alternative (or others) aggressively,” said Neronha’s office in the filing. Neronha’s office declined to comment further, or confirm whether Prime is the potential suitor. Prime, a national for-profit health care giant, which also owns and operates Landmark Medical Center in Woonsocket, has not responded to multiple Globe requests for comment. Nor have representatives or attorneys for Prospect or its would-be buyer, The Centurion Foundation, which has spent months trying to close a $165 million deal to take over the two hospitals. The deal, initially expected to close in May, has been stalled while Centurion struggles to secure financing. Yet Centurion president Ben Mingle insisted Monday that the nonprofit remains “fully committed” to completing the purchase, even as Prospect signals plans to shutter the facilities for good. Advertisement The new interest marks the first time since 2021, when Prospect began marketing the hospitals, that another possible buyer has emerged. Until now, Centurion has been seen as the only viable path forward. Governor Dan McKee told the Globe on Tuesday that the administration is “working closely with the Executive Office of Health and Human Services on contingency plans to protect patient care should all other viable options not materialize.” McKee appointed Richard Charest, the former CEO and president of Landmark Medical Center, as the secretary of the Rhode Island Executive Office of Health and Human Services in 2023. A spokeswoman for Charest’s office could not be immediately reached for comment about Charest’s role in any potential deal with Prime involving Prospect’s hospitals. For more than a decade, the two hospitals have been owned by the for-profit Prospect Medical Holdings, which filed for bankruptcy in January after years of operational and financial mismanagement. Both serve some of the state’s most vulnerable patients, including many on public insurance. This is a developing story and will be updated. Alexa Gagosz can be reached at alexa.gagosz@globe.com. Follow her @alexagagosz and on Instagram @AlexaGagosz.
