EXCLUSIVE: Neronha Filing With Court to Open Up CharterCARE Bidding to Others

EXCLUSIVE: Neronha Filing With Court to Open Up CharterCARE Bidding to Others

Rhode Island Attorney General Peter Neronha is expected to file a motion with Chief Judge Stacey Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas, asking the court to open a solicitation period for new healthcare groups to bid for the bankrupt CharterCARE hospitals — Roger Williams and Fatima.

 

The hearing is scheduled for Thursday morning at 10:30 ET.

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This creates a complete reset for the financially troubled hospitals.

 

Centurion Foundation, which has had an exclusive opportunity to purchase the hospitals for nearly a year, will be able to continue to bid, but the petition dramatically changes the dynamics.

 

Centurion, an Atlanta-based non-profit that has never run a hospital, missed a critical deadline before the bankruptcy court when it failed to raise the capital needed to purchase the hospital.

 

Centurion recently claimed it was close to securing $85 - $90 million, but says it needs the State of Rhode Island to backstop between $18 million and $36 million.

 

There are strong concerns that even if Rhode Island provided Centurion the tens of millions it is requesting, and it was able to close some financing, that the amount of capital needed to sustain the hospitals is hundreds of millions, and, thus, the hospitals would again be in crisis in just months.

 

GoLocal was first to report Prime Healthcare as a potential bidder, but within weeks, the company withdrew.

 

And, on Tuesday, GoLocal exclusively reported that Brown Health and state leaders have discussed a memo that outlines a potential path for Roger Williams and Fatima to be merged into Brown Health and potentially Care New England.

 

On Tuesday, Neronha declined to comment on the nature of the filing to the court.

 

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