Attorney General Neronha addresses news of potential Prospect bankruptcy
PROVIDENCE, R.I. – Attorney General Peter F. Neronha today issued the following statement addressing news of a potential bankruptcy by Prospect Medical Holdings.
“Yesterday, my Office learned of the same unconfirmed statements as you, and whether there is a bankruptcy filing or not, we will continue to work to ensure quality care and a responsible transition to new owners. For the past year, we have been preparing for the possibility of this exact scenario. We expect to learn more in the coming days, but here’s what we know now: Roger Williams and Fatima have the best possible chance for continued operation because of the work my Office has done to transition these safety net hospitals out of Prospect ownership.
“Our top priority remains unchanged: we must ensure the continuity of quality health care at these hospitals, and we will continue to work to achieve that. In 2021, we had the foresight to make approval of the sale to Prospect contingent on them putting $80M into an escrow account and just last year, we took them to Court to force them to pay $17M in unpaid bills. In 2024, we approved the sale of Prospect to Centurion, with even more robust conditions to ensure that our hospitals have the best possible chance for success – and should a bankruptcy occur, we believe that the transaction can and should move forward and away from Prospect.
“Rhode Islanders know the devastating effects of private equity on our healthcare system, not because we’ve studied it, but because we’ve lived it. And even so, these hospitals are well-positioned should Prospect file for bankruptcy because of the steps my Office has taken, with support from the General Assembly, in holding Prospect’s feet to the fire every step of the way – including hiring an experienced bankruptcy attorney in the Office, and retaining the law firm of Pillsbury, Winthrop, Shaw and Pittman, led by Andrew Troop, who represented the interests of the State of Massachusetts when Steward filed for bankruptcy.
“I know Rhode Islanders are concerned about the hospitals, and the sorry state of healthcare in this State; I am too. But know that we are well-prepared for this moment and laser-focused on ensuring our hospitals stay open and thriving.
“We will share updates as we learn more information.”
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