Overview
- Prospect Medical and the Rhode Island attorney general reached a short-term agreement in Texas bankruptcy court to delay any closure and keep Roger Williams Medical Center and Our Lady of Fatima Hospital operating through January.
- Losses for the month are estimated at $5 million to $6 million, which will be covered from an escrow account the state obtained from Prospect’s former owners, with roughly $35 million expected to remain at the end of January.
- If Centurion does not close within the extended window, Prospect’s counsel said the hospitals would be transferred to a state-designated transferee.
- Prime Healthcare has ended talks, leaving The Centurion Foundation as the sole prospective buyer; Centurion says it is committed, has added Bank of America Securities alongside Barclays to place bonds, and is targeting a financing close around Jan. 15, 2026.
- About $90 million in post-petition expenses remains a key hurdle, which Centurion has agreed to assume if the deal closes, while Prime’s exit was influenced by requirements such as taking on existing labor contracts.