CharterCARE Health Partners to return to Nonprofit Status; The Centurion Foundation Signs Definitive Agreement
The Centurion Foundation (Centurion) and Prospect Medical Holdings, Inc. (Prospect) announced today they have signed an Asset Purchase Agreement (APA) for Centurion to acquire the CharterCARE Health Partners (CCHP) system from Prospect. Centurion also announced that QHR Health will assist in the transition process and will provide ongoing consulting support to CharterCARE senior management and board of directors.
The agreement also includes CharterCARE’s related businesses, real estate assets, physician clinic operations and outpatient services, and it is subject to customary regulatory approvals, including reviews by the Rhode Island Department of Health and the Rhode Island Attorney General.
Under the APA, Centurion will purchase the assets and operations associated with the following hospitals and ancillary services that comprise CharterCARE:
- Roger Williams Medical Center in Providence, RI
- Our Lady of Fatima Hospital in North Providence, RI
- Blackstone Valley Surgicare in Johnston, RI
- CharterCARE Medical Associates in Providence, RI
- CharterCARE Home Health Services in Providence, RI
- Roger Williams Cancer Center in Providence, RI
- Southern New England Rehabilitation Center in North Providence, RI
- St. Joseph Health & Dental Center in Providence, RI
Prospect will continue to own and operate the value-based care business in Rhode Island consisting of Prospect Provider Group, an independent physician association (IPA), and Prospect Health Services of Rhode Island, which serves 72,000 members through its nearly 500 physicians and other providers in the IPA. Prospect will also continue to work closely with CharterCARE and its hospitals and ancillary entities.
Centurion is an Atlanta, GA-based nonprofit 501(c)(3) corporation organized to finance, own, and operate healthcare facilities. Its charitable mission is to increase access to and lower the cost of community-based healthcare. Centurion focuses on reinvesting operating profits into its facilities, people, and communities it serves.
Centurion will establish CharterCARE Health of Rhode Island, Inc., as a 501(c)(3) organization to acquire CCHP from Prospect. Upon closing, CCHP and its more than 2,500 employees will become a nonprofit health system seeking to increase access and lower the cost of healthcare services for the local community. Centurion of Rhode Island will maintain local leadership and will have a Board of Directors that includes local community leaders in the healthcare field.
QHR Health (QHR), based in Brentwood, TN, partners with nonprofit community hospitals and health systems to help them deliver quality healthcare and achieve results that keep healthcare local. QHR began providing onsite advisory services to Prospect earlier this summer for operational, financial and support functions of the health system until the transaction closes.
“Centurion was created for this exact purpose, to partner alongside providers and communities in creating equitable and cost-effective solutions,” said Ben Mingle, Centurion Foundation President. “We believe strongly in the mission of CharterCARE and look forward to the opportunity of engaging in a long-term relationship with the community.”
“CharterCARE is excited at the potential of this proposed acquisition, which allows us to build on Prospect’s significant investment in Rhode Island healthcare,” said Jeffrey Liebman, CharterCARE CEO. “The combination of a strong capital partner with an experienced operator of hospitals and the return to nonprofit status is very attractive. We look forward to filing our application with the Department of Health and Attorney General and working with regulators through the review process.”
The change in control application process is expected to be submitted to the Health Department and the Attorney General prior to the end of 2022.
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