Parent Company of RI's CharterCARE Is Selling More Hospitals in Philly

Parent Company of RI's CharterCARE Is Selling More Hospitals in Philly

Prospect Medical Holdings, who owns CharterCARE — Roger Williams and Fatima Hospitals and other assets in Rhode Island, is selling another hospital group in Philadelphia. The Pennsylvania deal was announced on Wednesday.

Of course, Prospect is in the process of selling in Rhode Island.

In late June, Prospect received conditional approval from Rhode Island Attorney General Peter Neronha, after a lengthy review, to sell its two hospitals to The Centurion Foundation. 

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The Rhode Island sale can only move forward with the sale if Prospect and Centurion]agree to dozens of conditions set by Neronha. As of 2023, Centurion only had one employee.

 

Philadelphia Sale

The Philadelphia Inquirer reports that the Prospect owned  Crozer Health could get a new owner under a preliminary agreement announced Wednesday by Prospect that “ has controlled the financially beleaguered Delaware County health system for eight years.”

“The tentative buyer is CHA Partners LLC, a New Jersey real estate company that specializes in buying hospital properties and redeveloping them into mixed-use medical facilities. The price was not disclosed.

‘We believe this is a positive step for our physicians, employees and the communities we serve, and will help secure Crozer Health’s future as a critical healthcare provider in Delaware County,’ Crozer CEO Tony Esposito said in an announcement. Esposito said it will take several months to reach a final agreement and complete the sale, which requires regulatory approvals.”

 

Hedge Funds Taking Winnings Put Financial Pressure in RI, PA and Elsewhere

“A series of financial maneuvers added to the financial pressure on Crozer. Prospect borrowed $1.12 billion in 2018 to pay off debt and issue a $457 million dividend to its owners, Leonard Green & Partners, as well as to individual owners, Prospect executives Sam Lee and David Topper.

Lee and Topper put Prospect into an even deeper financial hole the next year when they sold most of the company’s real estate to an Alabama real estate investment firm, Medical Properties Trust Inc. (MPT), for $1.4 billion,” reports the Inquirer.

Prospect is also trying to sell off hospitals in Connecticut.

 

Connecticut Litigation

Yale New Haven Hospital was to purchase three hospitals from Prospect, but that deal is now embroiled in litigation.

The deal was set to close this year, but Yale New Haven bowed out.

In recent weeks, the conflict heated last week after Prospect sued the hospital’s would-be buyer, Yale New Haven Health, alleging the health system had “actively worked to prevent” the deal from closing in a bid to get a lower purchase price.

According to Healthcare Dive, "Yale signed a binding agreement to acquire three hospitals from Prospect in 2022 for $435 million. However, the health system alleges Prospect has neglected the properties since that time, driving the facilities into “dire” conditions. Last month, Yale filed its own suit to get out of the deal. Now Prospect is petitioning Connecticut’s Superior Court to hold Yale to its word and force it to complete the deal. The complaint alleges Yale 'knew it was purchasing struggling hospitals' and had agreed to acquire the facilities on an 'as-is' basis.