Attorney General Peter F. Neronha announced the recovery of over $45 million for Roger Williams and Fatima hospitals following their sale from Prospect Medical Holdings. The funds are intended to support these local safety-net hospitals.
Neronha highlighted the challenges faced by community hospitals owned by private equity firms, referencing recent events in Massachusetts where such hospitals have either closed or required significant taxpayer funding to remain operational. He stated, “Over the last six months, we have seen what has happened to community hospitals owned by private equity next door in Massachusetts - closure, or the infusion of millions of taxpayer funds to keep them open, even after their sale to a new owner."
In this case, Prospect Medical Holdings and its private equity firm Leonard Green agreed to conditions imposed on the sale of Roger Williams and Fatima hospitals. These conditions also involve Centurion, the new owner. As a result, Prospect and Leonard Green will forfeit $45 million plus interest for the benefit of the hospitals.
Neronha emphasized that while challenges remain ahead, this action provides a "fighting chance" for the hospitals and imposes a "major penalty" on those responsible for their financial distress. He concluded, “Here, with Prospect, private equity firm Leonard Green and new owner Centurion agreeing to the conditions we have imposed on the sale of Roger Williams and Fatima hospitals, we are sending Prospect and Leonard Green packing while forcing them to forfeit $45 million dollars plus interest for the benefit of our hospitals.”