Attorney General Peter F. Neronha announced today that his office has filed a motion in Providence County Superior Court seeking to hold Prospect Medical Holdings (Prospect) in contempt for failing to comply with a recent court decision. The decision, issued by Judge Brian P. Stern on June 12, 2024, ordered Prospect to pay millions in overdue accounts payable to vendors.
According to the motion, Prospect has not provided sufficient evidence of compliance with the court's order. This lack of payment is reportedly jeopardizing the financial health and stability of Our Lady of Fatima Hospital and Roger Williams Medical Center, ultimately affecting patient care.
The Attorney General is requesting that the court order Prospect to provide adequate evidence of compliance and mandate future payments for the hospitals' accounts payable.
"One month ago, Judge Stern issued a decision requiring that Prospect comply with our 2021 HCA decision and pay over $17 million in outstanding invoices owed to vendors of Our Lady of Fatima Hospital and Roger Williams Medical Center," said Attorney General Neronha. "Since then, my office has not received sufficient evidence that Prospect has indeed paid its outstanding invoices, in defiance of the Court, and defiance of its moral obligation to operate Fatima and Roger Williams hospitals in a manner that does not jeopardize patient care."
Neronha added, "The only thing more reliable than Prospect’s inability to manage these hospitals is our Office’s commitment to holding them accountable and protecting Rhode Islanders’ access to health care."
The motion for contempt is subject to a confidentiality order issued by the court regarding proceedings in this enforcement matter. It will undergo a confidentiality review before being made publicly available.
In June 2021, Attorney General Neronha conditionally approved a transaction allowing Prospect to take ownership of Fatima and Roger Williams hospitals under stringent conditions designed to ensure continuity of healthcare services through 2026.