CharterCare Hospitals Will Remain Open Until January

CharterCare Hospitals Will Remain Open Until January

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

The effort by Centurion Foundation, an Atlanta-based not-for-profit, to buy the hospitals has been going on for years. Centurion has never operated a hospital and has few economic resources.

The deal was first announced in November 2022.

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

On Thursday, GoLocal broke the story that the other potential buyer, Prime, had withdrawn as a suitor.

An agreement was reached on Thursday night between attorneys for the bankrupt Prospect Medical Holdings — the owners of CharterCARE — and Rhode Island Attorney General Peter Neronha.

Rhode Island will give an extension to close to Centurion. The State of Rhode Island will cover any extension costs from the dwindling $51 million held in reserve. Neronha had previously committed $6 million to cover the losses for the hospitals for November and December. And now, he has committed another $6 million to cover losses for January. 

The reserve account will be exhausted to $39 million.

The deal still needs to be finalized and “papered.”  This deal keeps Roger Williams and Fatima hospitals open.

This agreement will extend for two months — December and January.

The order would provide the Centurion with the necessary time to close within this timeframe, or Rhode Island will likely take over the hospitals. 

Centurion has been unable to close financing for the hospitals' acquisition for the past 11 months.

THIS STORY IS DEVELOPING...