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RI HEALTH

A missed deadline, a bankrupt owner, and a state on the hook for two Rhode Island hospitals

A stalled deal puts care for thousands of vulnerable patients and the fate of two safety-net hospital in the state’s hands

Our Lady of Fatima Hospital in North Providence, R.I., could face a state takeover if its potential buyer cannot secure its financing.
Our Lady of Fatima Hospital in North Providence, R.I., could face a state takeover if its potential buyer cannot secure its financing.Danielle Parhizkaran/Globe Staff

PROVIDENCE — The Centurion Foundation has failed to close on its years-long promise to purchase two cash-strapped hospitals in Rhode Island by a court-approved deadline, setting these facilities on a path toward state control, while their bankrupt owner could walk away.

Under a deal approved in federal bankruptcy court, the missed Jan. 15 deadline means Rhode Island must prepare for the possibility of taking over the hospitals later this month to keep them open and seeing patients. The agreement marks a turning point in a long-running effort to get the hospitals out of the hands of their corporate owner, bankrupt Prospect Medical Holdings.

What had been a largely stalled private transaction is now shifting toward a state-backed rescue plan, which could expose taxpayers to financial risk while raising questions about the future of care for some of the state’s most vulnerable patients.

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The Centurion Foundation missed its deadline to buy the two Rhode Island hospitals. Now what?



Who owns Roger Williams Medical Center and Our Lady of Fatima Hospital?

Why is Centurion having a hard time securing investors?

Will the state create that $18 million fund to help The Centurion Foundation close the deal?



The emergency department inside Roger Williams Medical Center in Providence, R.I.
The emergency department inside Roger Williams Medical Center in Providence, R.I.John Tlumacki/Globe Staff

What happens if the hospitals are transferred into state control?



What’s at risk if the state takes control of the hospitals?

What’s at risk if the state does not take control of the hospitals?



Could the bankruptcy court extend the deadline for Centurion?


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