Short-Term Financing Secures Hospitals Through November
Roger Williams Medical Center and Our Lady of Fatima Hospital will remain open until the end of November thanks to a short-term financing agreement. This deal was made between their bankrupt owner and the Rhode Island Attorney General’s office.
Background and Court Approval
A federal bankruptcy judge in Dallas approved the agreement on Friday morning, reversing what previously seemed like a definite shutdown for these essential safety net hospitals in Providence and North Providence.
Owner's Intent and Sale Delays
Prospect Medical Holdings, the Los Angeles-based operator, had requested court permission to close the hospitals by year-end amid delays finalizing their sale to a new owner.
Pending Sale Details
The $80 million sale to The Centurion Foundation, an Atlanta-based nonprofit, was conditionally approved by state regulators in June 2024. Despite ongoing modifications to meet 85 regulatory conditions, the foundation has yet to secure the $150 million in bond financing needed to complete the transaction.
“A short-term financing deal will keep the hospitals operating through November.”
“The deal approved by a federal bankruptcy judge attempts to cure what looked like a fatal prognosis a week earlier.”
Photo Credit
Photo by Michael Salerno/Rhode Island Current
Summary: A recently approved short-term financing deal ensures Roger Williams and Fatima hospitals will stay open through November while the ongoing sale seeks final financial closure.