Rhode Island
GoLocalProv | Business | NEW: Georgia-Based Centurion Foundation Submits Application to Buy CharterCare From Prospect Medical
Friday, May 26, 2023
Fatima Hospital. PHOTO: File
The Centurion Foundation (Centurion) and Prospect Medical Holdings, Inc. (Prospect) announced on Friday that they have completed their joint application to the Rhode Island Department of Health (RIDOH) and the Office of Attorney General (RIAG) seeking approval of Centurion’s proposed purchase of CharterCARE Health Partners from Prospect.
The deal was initially announced last November.
The Hospital Conversions Act (“HCA”) application was submitted to RIDOH and RIAG and must be deemed “complete” by the both agencies before review under the HCA can begin.
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In addition to the HCA Application, Centurion and Prospect contemporaneously submitted the required Change in Effective Control Applications to RIDOH. With approval from RIDOH and RIAG and upon completion of the transaction, the health system will be a locally governed non-profit with no further involvement from Prospect.
“This is an important step in the next phase of our future as a critical health care resource and employer in this area and allows us to build on Prospect’s significant investment in our system and in Rhode Island,” said Jeffrey Liebman, CharterCARE CEO. “We pledge to cooperate fully with the Department of Health and the office of Rhode Island Attorney General throughout the application review process. We want all Rhode Islanders to be confident that this proposal is in the best interest of our community, our employees and our physician partners.”
Latest in Process
Last year, Centurion and Prospect signed an Asset Purchase Agreement (APA) for Centurion to acquire the CharterCARE Health Partners (CharterCARE) system from Prospect.
The APA includes CharterCARE’s related businesses, real estate assets, physician clinic operations and outpatient services:
• Roger Williams Medical Center in Providence, RI
• Our Lady of Fatima Hospital in North Providence, RI
• Blackstone Valley Surgicare in Johnston, RI
• CharterCARE Medical Associates in Providence, RI
• CharterCARE Home Health Services in Providence, RI
• Roger Williams Cancer Center in Providence, RI
• Southern New England Rehabilitation Center in North Providence, RI
• St. Joseph Health Center in Providence, RI
The HCA review will carefully evaluate the ability of Centurion to provide Rhode Islanders with access to quality, affordable care, especially those in underserved communities, as well as its commitment to continue collective bargaining rights, to improve facilities and equipment, and to safeguard the interests of all employees and affiliated physicians.
Decisions on the HCA and CEC applications are expected within 180 days of its acceptance by RIDOH and RIAG following the agencies’ review.
Centurion
Centurion is an Atlanta, GA-based nonprofit 501(c)(3) corporation organized to finance, own, and operate healthcare facilities. Its’ charitable mission is to increase access to and lower the cost of community-based healthcare. Centurion focuses on reinvesting operating profits into its facilities, people, and the communities it serves.
Centurion has formed CharterCARE Health of Rhode Island, Inc. (“Centurion of Rhode Island”), as a nonprofit organization to acquire CharterCARE from Prospect. Upon closing, CharterCARE and its more than 2,500 employees will become a nonprofit health system seeking to increase access and lower the cost of healthcare services for the local community. Centurion of Rhode Island will maintain local leadership and will have a Board of Directors that includes local community leaders in the healthcare field. Visit www.CentrurionRI.org to learn more.
“We believe strongly in the community-centered mission of CharterCARE,” said Centurion President Ben Mingle. “We seek to become a contributing member of the Rhode Island health care system by preserving and enhancing CharterCARE’s role to provide high quality, affordable, and accessible inpatient and outpatient healthcare.”