Attorney General Peter F. Neronha has addressed concerns regarding the potential bankruptcy of Prospect Medical Holdings. In a statement, he assured that his office is prepared for such an eventuality and remains committed to ensuring quality healthcare and a smooth transition to new ownership.
Neronha stated, "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." He emphasized that preparations have been ongoing for the past year in anticipation of this scenario.
The Attorney General highlighted efforts made by his office over recent years. These include securing $80 million in escrow during the 2021 sale approval process and taking legal action last year to address $17 million in unpaid bills by Prospect. In 2024, further measures were taken with the approval of Prospect's sale to Centurion under stringent conditions aimed at safeguarding hospital operations.
Neronha acknowledged Rhode Islanders' concerns about private equity's impact on healthcare but reassured them of proactive steps taken by his office. He mentioned hiring an experienced bankruptcy attorney and retaining legal expertise from Pillsbury, Winthrop, Shaw and Pittman for additional support.
He concluded by expressing understanding of public concern: "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."
Updates will be provided as more information becomes available.