St. Joseph Pension Fund Reaches Settlement for $30M, Diocese of Providence Refused to Negotiate

St. Joseph Pension Fund Reaches Settlement for $30M, Diocese of Providence Refused to Negotiate

St. Joseph’s failed pension fund has reached an agreement with a number of litigants including the hospital's former owner CharterCARE.

The agreement does not include the Diocese of Providence who refused to participate in negotiations.

The settlement is for $30 million not including legal fees and bolsters the total amount recovered for the past 3 plus years to $47 million.

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CharterCare's parent company will pay the lion's share of $27 million and other related litigants will pay combined $3 million.

In a letter from Special Investigator Max Wistow to Senate President Dominick Ruggerio, he announced, “We have filed with Superior Court a fully executed settlement agreement with certain defendants in the lawsuit relating to the shortfall in the plan’s funding.”

Ruggerio has been active in trying to press for recovery of funds to the pension. 

The agreement must be approved by both Superior Court Judge Brian Stern and U.S. Federal Court Judge William Smith.

In a statement to GoLocal, Prospect Medical Holdings, the majority owner of CharterCARE Health Partners, said the agreement provides for Prospect’s payment of $27.25 million, also resolves all litigation related to the pension fund provided by the prior owner of the CharterCARE hospitals.  The negotiated agreement involves no acknowledgment of liability by the parties. Prospect will receive 15% ownership stake that the pension fund held in CharterCare.

“We are pleased to reach this agreement, which furthers our investment in the CharterCARE hospitals and Rhode Island,” said Jeffrey Liebman, CEO of CharterCARE Health Partners. “Prospect and CharterCARE remain committed to Rhode Island and we will continue to ensure that residents of the state receive exceptional quality care and the best and most personalized patient experience at the best value.”

Of the $47 million recovered to date, Wistow will receive payments in excess of $11 million.

The fund is estimated to be underfunded by $50 million.

This story is developing.