Rhode Island Hospitals Face Potential Closure as Prospect Medical Files for Bankruptcy

Rhode Island’s CharterCARE hospitals, Roger Williams and Our Lady of Fatima, are facing potential closure or state takeover after Prospect Medical Holdings filed for bankruptcy today and requested permission from a Texas bankruptcy court to shutter the facilities by December 31, 2025.

State leaders responded swiftly, with Speaker Joe Shekarchi and Senate President Val Lawson issuing a joint statement affirming the hospitals’ importance to the Rhode Island healthcare system and their commitment to supporting a sale and ensuring continued viability. Rhode Island Attorney General Peter Neronha is also involved in the situation, and his comments can be found here. Director of Health Jerome Larkin stated the department “remains committed to ensuring that Roger Williams Medical Center and Our Lady of Fatima Hospital stay open and operational,” emphasizing the critical role they play in the state’s healthcare infrastructure.

Centurion, working to secure financing for a sale, stated that the bankruptcy filing has no immediate impact on hospital operations, with high patient census and employees reporting for work as usual. Otis Brown, a Centurion spokesperson, also urged the CharterCARE Foundation to release $6 million in charitable assets intended for the hospitals to help finalize the deal. The United Nurses and Allied Professionals (UNAP), representing nearly 1,200 employees, echoed this call, warning that closure would “be an all out catastrophe” for the state’s healthcare system, potentially overwhelming other hospitals and displacing thousands of workers. “There is no better use of state funds than using them to ensure these hospitals stay open and our health care system doesn’t collapse,” said UNAP General Counsel Chris Callaci. The potential loss of these hospitals could significantly strain healthcare access for vulnerable communities in Rhode Island.

Governor Dan McKee has not yet publicly commented on the situation. Officials continue to work with all parties involved, and the matter remains before the bankruptcy court, with no decision yet made on Prospect’s motion.