Attorney General Neronha seeks to hold owners of Fatima and Roger Williams hospitals in contempt of court over unpaid bills

Published on Friday, July 12, 2024

Attorney General Peter F. Neronha announced today that the Office has filed a motion in Providence County Superior Court seeking to hold Prospect Medical Holdings (Prospect) in contempt for refusing to comply with a recent court decision ordering Prospect Medical Holdings to pay millions in unpaid bills.

As alleged in the motion, to date, Prospect has not provided sufficient evidence that it has complied with Judge Brian P. Stern’s June 12, 2024 decision ordering Prospect to pay millions of dollars in overdue accounts payable to vendors, jeopardizing the financial health and stability of the hospitals, and ultimately patient care.

The Attorney General asks that the Court order Prospect to provide sufficient evidence that it has complied with the Court’s decision to pay its unpaid bills and mandate that it fund payment of the hospital’s accounts payable going forward.

“One month ago, Judge Stern issued a decision requiring that Prospect comply with our 2021 HCA decision and pay over $17 million in 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,” said Attorney General Neronha. “Since then, my Office has not received sufficient evidence that Prospect has indeed paid its outstanding invoices, in defiance of the Court, and defiance of its moral obligation to operate Fatima and Roger Williams hospitals in a manner that does not jeopardize patient care. The only thing more reliable than Prospect’s inability to manage these hospitals is our Office’s commitment to holding them accountable and protecting Rhode Islanders’ access to health care.”

The motion for contempt is subject to a confidentiality order issued by the Court pertaining to the proceedings in this enforcement matter. The motion will undergo a confidentiality review before it is made publicly available.

Attorney General’s 2021 HCA Decision

Pursuant to the HCA, the Attorney General regulates, along with the Department of Health, transactions involving the change in ownership of hospitals.

On June 1, 2021, Attorney General Neronha issued a decision to conditionally approve a transaction that would allow Prospect to take ownership of Fatima and Roger Williams hospitals. To ensure the continuity of health care services and operations at the hospitals for the benefit of Rhode Islanders, the Attorney General placed strong conditions in approving the change of ownership transaction, which included a full financial commitment to the Rhode Island hospitals to cover operational and capital expenses through 2026. For a full list of conditions, refer to the decision.

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