Attorney General Neronha applauds RI Superior Court Justice Brian P. Stern’s decision ordering Prospect Medical Holdings to pay $17M in unpaid bills

Published on Wednesday, June 12, 2024

Attorney General Peter F. Neronha issued the following statement in reaction to a Rhode Island Superior Court decision ordering Prospect Medical Holdings to pay millions in unpaid bills:

“I appreciate Judge Stern’s decision and careful consideration of this matter. As we argued, and the Court ordered, Prospect Medical Holdings must comply with our 2021 HCA decision, including paying $17 million within the next 10 days for outstanding invoices owed to vendors of Our Lady of Fatima Hospital and Roger Williams Medical Center, to facilitate the continuation of safe, reliable patient care at these two essential safety-net hospitals. The decision unambiguously and correctly concludes that Prospect repeatedly failed to comply with important conditions set in our 2021 decision.”

“As Judge Stern held, and we argued, ‘Respondent's use of the Hospitals as a private bank and treatment of accounts payable as a credit facility loan in violation of the Conditions and the HCA constitutes irreparable harm…’  The Court also confirmed the wisdom of our requirement that Prospect put $80 million in escrow in 2021, subject to our control, when it noted ‘[the Attorney General’s] trepidation in approving [Prospect’s] purchase of the Hospitals has proven to be well-placed as [Prospect] benefits from the Hospitals' government assistance while refusingto pay the Hospitals' expenses.’”