Joint Statement on Next Steps in the Potential Sale of Roger Williams Medical Center and Fatima Hospital
PROVIDENCE, RI – Attorney General Peter F. Neronha, Governor Daniel J. McKee, House Speaker K. Joseph Shekarchi, Senate President Valarie J. Lawson, the Rhode Island Department of Health, and the Executive Office of Health and Human Services today released the following statement about next steps in the potential sale of Roger Williams Medical Center and Fatima Hospital:
“Roger Williams and Fatima are critical safety-net hospitals; critical to the communities they serve and to the broader health care landscape in Rhode Island. It is now well-known that their current owner, Prospect Medical Holdings, severely mismanaged the hospitals before filing for bankruptcy in federal bankruptcy court in Texas early last year. The hospitals remain open today due to the $50 million dollars in the escrow account the Attorney General secured in 2021, which is presently funding their operations.
“In February 2025, the federal bankruptcy court in Texas allowed the sale of the hospitals to the Centurion Foundation previously approved by the Attorney General and Department of Health to move forward, pending Centurion’s ability to close the deal. To date, they have been unable to do so. Recently, Centurion has represented that it has verbal financing commitments sufficient to permit it to close by February 27, 2026.
“As such, after conferring with the Governor and General Assembly leadership, and counsel for the bankruptcy estate, the Attorney General today filed a proposed stipulation and order in federal bankruptcy court in Texas which, if approved, would extend the transfer date of the hospitals to February 27, 2026 to allow Centurion additional time to pursue finalization of the purchase of the hospitals. At the same time, the stipulation would authorize the state and the debtors to evaluate alternative proposals from new prospective buyers of the hospitals. Parties interested in submitting proposals must do so by February 17, 2026 as set forth in the Third Stipulation.
“Simultaneously, in consultation with the Governor, the General Assembly leadership will introduce legislation today that would authorize $18 million in state funding to assist Centurion, if Centurion secures the financing to purchase the hospitals and close their deal. Legislation will also be introduced to allow for an expedited Hospital Conversions Act should Centurion fail to close and an alternative purchaser is identified. Any application received from a prospective buyer under this proposed legislation would still be subject to thorough Hospital Conversions Act review and approval by the Attorney General and the Department of Health.
“These hospitals are crucially important to maintaining stability within Rhode Island’s health care system. The state is committed to working on solutions that promote the transfer of these hospitals to a purchaser who will keep them open and thriving.”
