CharterCARE’s Parent Company Files for Bankruptcy - Fate of Roger Williams & Fatima in Question

CharterCARE’s Parent Company Files for Bankruptcy - Fate of Roger Williams & Fatima in Question

Prospect Medical Holdings, which owns CharterCARE and operates Roger Williams and Fatima hospitals in Rhode Island, has filed for bankruptcy.

The filing throws the proposed sale of the two Rhode Island hospitals and other assets into question.

In an initial filing seeking Chapter 11 protections filed Saturday night, Prospect, which also owns facilities in California, Pennsylvania, and Connecticut, listed debts of more than $400 million.

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In a press release announcing its restructuring, the company said it would continue to operate as normal.

"Throughout the Chapter 11 process, Prospect Holdings' hospitals, medical centers, and physicians' offices will remain open, and patient care and services will continue uninterrupted," the company wrote. 

President of the Senate Dominick J. Ruggerio said, “I have been in regular contact with the Attorney General and state regulators regarding this issue, and we continue to closely monitor developments. This bankruptcy filing is not unanticipated. My highest priority continues to be the continuity of health services provided at Fatima and Roger Williams hospitals. I’m very grateful to the Attorney General for his strong leadership, his preparation for every eventuality, and his ongoing diligence as we work towards our shared goal of a transfer of these hospitals to a responsible new owner.”

But that transfer has not taken place as the company seeking to buy the two Rhode Island hospitals seeks financing.

The Rhode Island hospitals both pay millions of dollars in taxes and are among the largest taxpayers for Providence and North Providence.

The two Rhode Island hospitals were to be sold to a Georgia-based company.