Overview
- Prospect Medical asked a Texas bankruptcy judge to permit state control or closure of Roger Williams and Fatima by Dec. 31, citing steep losses after a stalled sale.
- U.S. Bankruptcy Judge Stacey Jernigan pressed for a swift outcome, as Attorney General Peter Neronha attended the hearing and later said he is optimistic after extended negotiations.
- Neronha is weighing limited short-term funding from a $50 million settlement pot to cover operating losses through year-end in exchange for pausing the closure push.
- Centurion says it remains committed, reporting a bridge-financing term sheet and involvement from Bank of America, while arguing Prospect’s filing jeopardizes bond financing and breaches disclosure terms.
- Prime Healthcare has begun due diligence after state outreach and joined talks as a potential backup buyer for the safety-net facilities that provide key behavioral health and specialty services.