By PBN Staff
By PBN Staff
PROVIDENCE – Fifteen months after CharterCare Health Partners first announced its intention to partner with Los Angeles-based Prospect Medical Holdings Inc., the new for-profit joint venture between the two groups officially launched on June 20 with the formation of Prospect CharterCare LLC.
Jointly owned by Prospect Medical and CharterCare, the combined company will operate Roger Williams Medical Center, St. Joseph Health Services of Rhode Island/Our Lady of Fatima Hospital and Elmhurst Extended Care, working to develop a regional health network of physicians, urgent care centers, nursing homes and other health care groups.
Prospect CharterCare LLC will do business as CharterCare Health Partners, CharterCare said in a statement Tuesday.
Under the terms of the venture agreement, which received final approval from the R.I. Department of Health and attorney general’s office last month, Prospect Medical owns 85 percent of Prospect CharterCare LLC, while CharterCare owns 15 percent.
To provide capital to pay down the two hospitals’ long-term debt and invest in improved facilities and equipment, Prospect Medical Holdings will provide $95 million to CharterCare over the next four years, and an additional $50 million over the following four-year period.
“Our new joint venture is going to provide exciting new opportunities for physicians and other health providers to affiliate with a health system that is financially strong, committed to quality in all it does and ready to meet both the challenges and opportunities in today’s rapidly changing health care marketplace,” said Edwin Santos, current chairman of CharterCare, who will also chair Prospect CharterCare’s eight-member governing board.
The board will be made up of 50 percent Prospect Medical representatives and 50 percent CharterCare representatives.