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Judge to Weigh Prospect’s Bid to Close Two Rhode Island Hospitals as State Fights Back

The case now turns on whether financing or a new buyer can materialize fast enough to avert a shutdown.

Overview

  • Hearing is set for Tuesday morning in Texas before Judge Stacey Jernigan on Prospect’s motion seeking Dec. 31 closure or state control of Roger Williams and Fatima.
  • Attorney General Peter Neronha will attend in person to oppose the request, arguing the hospitals’ loss would be catastrophic for Rhode Island’s health system.
  • Centurion says it remains committed to the purchase, citing Bank of America’s addition to the financing team and a potential bridge loan, while warning Prospect’s filing endangers its bond sale.
  • Neronha disclosed that another potential buyer has recently begun due diligence, creating a possible alternative if the Centurion deal cannot close.
  • Prospect cites unsustainable losses of about $18.7 million over the last six months with more expected, as the hospitals continue operating and serving patients.