Attorney General Peter F. Neronha, Governor Daniel J. McKee, House Speaker K. Joseph Shekarchi, Senate President Valarie J. Lawson, the Rhode Island Department of Health, and the Executive Office of Health and Human Services have released a joint statement regarding the ongoing process for the potential sale of Roger Williams Medical Center and Fatima Hospital.
The statement highlights the importance of these hospitals as essential providers for their communities and for Rhode Island’s overall health care system. The officials note that Prospect Medical Holdings, which currently owns the hospitals, mismanaged them before filing for bankruptcy in Texas early last year. Operations at the hospitals have continued due to $50 million placed in escrow by the Attorney General in 2021.
According to the statement, “Roger Williams and Fatima are critical safety-net hospitals; critical to the communities they serve and to the broader health care landscape in Rhode Island. It is now well-known that their current owner, Prospect Medical Holdings, severely mismanaged the hospitals before filing for bankruptcy in federal bankruptcy court in Texas early last year. The hospitals remain open today due to the $50 million dollars in the escrow account the Attorney General secured in 2021, which is presently funding their operations.”
The federal bankruptcy court allowed a sale of both hospitals to Centurion Foundation—an arrangement previously approved by state authorities—to proceed if Centurion could finalize its financing. To date, Centurion has not closed on this deal but has recently indicated it has verbal commitments that could allow completion by February 27, 2026.
The officials stated: “In February 2025, the federal bankruptcy court in Texas allowed the sale of the hospitals to the Centurion Foundation previously approved by the Attorney General and Department of Health to move forward, pending Centurion’s ability to close the deal. To date, they have been unable to do so. Recently, Centurion has represented that it has verbal financing commitments sufficient to permit it to close by February 27, 2026.”
Attorney General Neronha filed a proposed stipulation and order with the federal bankruptcy court that would extend Centurion’s deadline until February 27, 2026. This extension aims to give Centurion more time while also permitting state officials and debtors to consider other purchase proposals from interested parties until February 17, 2026.
“As such, after conferring with the Governor and General Assembly leadership, and counsel for the bankruptcy estate, the Attorney General today filed a proposed stipulation and order in federal bankruptcy court in Texas which, if approved, would extend the transfer date of the hospitals to February 27, 2026 to allow Centurion additional time to pursue finalization of the purchase of the hospitals. At the same time, the stipulation would authorize the state and the debtors to evaluate alternative proposals from new prospective buyers of the hospitals. Parties interested in submitting proposals must do so by February 17, 2026 as set forth in the Third Stipulation,” according to their statement.
Legislation will be introduced authorizing $18 million in state funding for Centurion if it completes its purchase as planned. Additional legislation will propose an expedited review process under Rhode Island’s Hospital Conversions Act should another buyer emerge if Centurion does not close on its acquisition.
“Simultaneously, in consultation with the Governor, the General Assembly leadership will introduce legislation today that would authorize $18 million in state funding to assist Centurion, if Centurion secures the financing to purchase the hospitals and close their deal. Legislation will also be introduced to allow for an expedited Hospital Conversions Act should Centurion fail to close and an alternative purchaser is identified. Any application received from a prospective buyer under this proposed legislation would still be subject to thorough Hospital Conversions Act review and approval by the Attorney General and Department of Health.”
The statement concludes: “These hospitals are crucially important to maintaining stability within Rhode Island’s health care system. The state is committed to working on solutions that promote transfer of these hospitals to a purchaser who will keep them open and thriving.”
