CharterCARE in Peril: Centurion Misses Deadline, Makes Demand for State Funding

CharterCARE in Peril: Centurion Misses Deadline, Makes Demand for State Funding

This past week, Centurion Foundation, an Atlanta-based non-profit that has never operated a hospital, missed the deadline to close the purchase of bankrupt CharterCARE — which was January 15.

The fate of the CharterCARE hospitals — Roger Williams and Fatima — is now even more confused.

Centurion has failed to close on more than $150 million in bonds for the past eleven months.

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Rhode Island Attorney General Peter Neronha told GoLocal on Saturday, “I can’t comment on their financing status, but this Bankruptcy Court Order required Centurion to close by January 15. They did not. The Order describes what happens next.”

“Centurion is free to continue to try to close but we now have work to do and a deadline by which to do it, which my Office is working hard on in consultation with other state leaders and I expect you will hear more about that next week,” Neronha added.

 

Demanding State Support

Centurion has repeatedly claimed it was close to finalizing bond financing. But each time, investors rejected the deal.

On Friday night, Centurion’s CEO Ben Mingle sent a letter to state leaders and other involved parties claiming the company could secure some of the financing — about $85 million — conditional on the state providing $18 million in financing.

Mingle wrote, "I am pleased to inform you that we have secured verbal commitments from four (4) investors at an aggregate amount sufficient to facilitate the closing of our proposed acquisition of Roger Williams Medical Center and Our Lady of Fatima Hospital (and related assets) from Prospect Medical Holdings in accordance with state requirements. As a result of this development, we are now working with those investors to engage purchaser’s counsel and will be formalizing bond purchase agreements with each investor.”

“Each investor has clearly stated that their investment is subject to, and conditioned upon, having a state-funded bond reserve fund in the amount of $18 million. Centurion Foundation respectfully requests that legislation be introduced at the earliest possible time to allow for the approval and implementation of this bond reserve fund. Subject to the timing of enactment of the legislation establishing and funding the bond reserve fund, Centurion is working diligently to close this transaction not later than February 28, 2026,” added Mingle.

The total amount Centurion is trying to close is far less than the $150 million. GoLocal is told the number is less than $90 million.

There have been no public statements from state leaders in response to Mingle’s claims and demands.

 

Next Step

The fate of the CharterCARE hospitals and their approximately 2,000 employees may get some clarification on Wednesday in a hearing before Chief Judge Stacey Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas.

Prospect Medical Holdings, the owners of CharterCARE hospitals, petitioned Jernigan this past fall to close the hospitals or for the State of Rhode Island to take them over.

The McKee administration has not filed with the bankruptcy court to take control of the hospitals, and McKee did not include any funding for a CharterCARE bailout in the budget. 

UPDATED: 8:26 AM