CharterCare, Prospect Medical application to go under review
THE CHARTERCARE Health Partners and Prospect Medical Holdings application for a joint hospital venture advanced another step along the regulatory process Friday, as the Rhode Island attorney general and R.I. Department of Health deemed the application complete. The agencies now have 120 days to review the application and determine whether or not the transaction may go forward.
PROVIDENCE – The Rhode Island attorney general’s office and the R.I. Department of Health have deemed CharterCare Health Partners and Prospect Medical Holdings’ application for a joint venture to be complete, the two agencies announced Friday.
The attorney general and Health Department have 120 days beginning Jan. 17 to review and evaluate the application to determine if the transaction may go forward, per the Rhode Island Hospital Conversion Act.
CharterCare and Prospect Medical jointly submitted the application on Oct. 18, following the signing on Sept. 24 of an asset purchase agreement under which Prospect Medical Holdings will serve as the manager of the hospital joint venture under a management contract.
Prospect Medical will provide $95 million to CharterCare over the next four years, of which $45 million will be subject to regulatory approval to be used for debt reduction and short-term working capital.
Prospect Medical Holdings will provide an additional $50 million over the following four-year period to provide capital for physician network development, facility improvement and technology acquisition, the companies said.
The transaction is expected to be completed early this year, subject to regulatory and church approval (St. Joseph Health Services of Rhode Island/Our Lady of Fatima Hospital have remained Roman Catholic institutions even after merging with Roger Williams to form CharterCare).