Prospect Medical Holdings filed for bankruptcy in a Dallas federal court Friday afternoon.
According to the company, Prospect Holdings’ hospitals, medical centers, and physicians’ offices will remain open, and patient care will continue uninterrupted.
Our hospitals, programs, and physician practices are fully operational, busy, and actively treating patients, from emergency services to cancer care.
For the immediate future, we expect our Rhode Island hospitals to operate as normal.
This is personal to me, as I know it is to Rhode Island residents.
According to court documents, the parent organization of Roger Williams Medical Center and Our Lady of Fatima Hospital has declared bankruptcy.
In a federal court in Dallas, Prospect Medical Holdings declared bankruptcy on Friday afternoon.
The company says that patient care will continue unhindered at Prospect Holdings’ hospitals, medical centers, and doctor’s offices. For the length of the Chapter 11 bankruptcy process, the company promises to work with stakeholders to secure the funding they need.
A representative for Roger Williams Medical Center and Our Lady of Fatima Hospital, which are directly run by CharterCARE, issued the following statement.
There is no immediate effect on CharterCARE Health Partners’ operations from the news that Prospect Medical Holdings filed for federal bankruptcy protection. From emergency services to cancer care, our hospitals, programs, and doctor’s offices are fully functional, occupied, and actively treating patients. Residents of Rhode Island should feel secure in the knowledge that they can continue to access our system of hospitals and outpatient services for top-notch, nationally recognized care.
The following statement was issued by Attorney General Peter Neronha of Rhode Island in reaction to this news.
My office received word this morning that Prospect had filed for Chapter 11 bankruptcy in the Dallas, Texas, federal bankruptcy court. The sale of Roger Williams and Fatima to the Centurion Foundation is part of Prospect’s proposed bankruptcy plan, the company said in a press release late last night.
We anticipate that our Rhode Island hospitals will continue to function normally for the foreseeable future. I am aware that many people find the word “bankruptcy” frightening, particularly when combined with the uncertain future of two hospitals that are essential to the continued existence of Rhode Island’s healthcare system. However, I’ll reiterate what I stated earlier this week: this office is ready for anything. We are aware that this filing is possible; in fact, it has been a possibility for a while. And as it appeared that the filing was becoming more likely, we increased our preparations. Our sole objective while in Texas on behalf of Rhode Islanders is to make sure that these hospitals continue to provide the state’s residents with high-quality healthcare thanks to the efforts of their exceptional staff.
One thing I want to clarify is that the situation is the only thing that has changed. Since 2021, my office has made a strong commitment to making sure these hospitals remain open and capable of offering Rhode Islanders high-quality medical care. We will keep assisting in the responsible transfer of these hospitals to new ownership, putting an end to the destructive private equity ownership era and paving the way for a time when we can give our safety net hospitals a fair shot at the future.
I know people in Rhode Island feel the same way about this. Two doctors in my family frequently share with me the difficulties in delivering high-quality care in the modern healthcare system. I am also fully aware of the difficulties facing our ailing system in Rhode Island. Although this is difficult material, Rhode Island leadership can and should use it as motivation to step up and try to offer practical solutions rather than merely platitudes.
However, know that we are prepared for this and will see it through both in person in the Northern District of Texas and here in Rhode Island. We will share more information as we learn more.
As we find out more, we’ll keep you informed.
In the meantime, Sen. Additionally, Sheldon Whitehouse (D-RI) issued a statement along these lines.
When hospitals are taken over by private equity firms, negative outcomes for both patients and providers are commonplace. On the Budget Committee, we looked into what happens when health care operators like Prospect and private equity firms take over facilities and bleed them dry. The end result is nearly always detrimental to patients as well as diligent hospital employees. The good news for residents of Rhode Island is that the conversion process for nearby Prospect-owned hospitals was already well underway, and there would be little disruption to the state’s healthcare system. We must, however, be very clear that a hospital’s patients and employees, not avaricious private equity investors, must be its top priorities as we make decisions about our health care system going forward.
This is a story that is evolving. For the most recent information, tune in to NBC 10 News.