News & Press Releases
CharterCARE Announces Letter of Intent Agreement with Prospect Medical Holdings
CharterCARE Health Partners (“CCHP”), the corporate parent of Roger Williams Medical Center and St. Joseph Health Services of Rhode Island/Our Lady of Fatima Hospital, announced today that it has executed a Letter-of-Intent (“LOI”) with Prospect Medical Holdings, Inc. (“PMH”), a national healthcare services company.
Under the proposed transaction, CCHP and PMH will create a new and innovative joint venture that will maintain local governance and input, while serving as a model alternative for the delivery of high quality, cost efficient care for the people of Rhode Island. Furthermore, PMH will make a significant capital contribution into a new company, which will be jointly owned by PMH and CCHP. Fifty percent of the Board of Directors of the new company will be appointed by CCHP, thereby maintaining a strong, local governance presence.
Edwin Santos, Chairman of the CCHP Board, stated "We look forward to completing this transaction, which will provide significant capital for our hospitals to sustain and develop clinical programs, acquire new technology, attract physicians and maintain a skilled workforce." Santos continued "Our affiliation with Prospect Medical Holdings will ensure strong local management and direction for this exciting venture as we work with Prospect to develop a strategic plan for growth in Rhode Island.”
Kenneth Belcher, CEO of CCHP, stated "We are pleased to have found such a strong capital partner in PMH and its corporate management team, who recognize and share our important mission and vision in health care delivery in Rhode Island. PMH seeks to make a significant investment in us and, by extension, in Rhode Island.”
Tom Reardon, president of Prospect East, indicated, ”Prospect is excited about its new partnership with CCHP and believes that the joint venture will build a unique and innovative model for a clinically integrated healthcare delivery system composed of high-quality providers that deliver high quality care.
CCHP and PMH will work toward the development of a Definitive Agreement, at which time an application for approval under the Rhode Island Hospital Conversion Act will be made to the Rhode Island Attorney General and the Rhode Island Department of Health.
About CharterCARE Health Partners
CCHP is the corporate parent of Roger Williams Medical Center and St. Joseph Health Services of Rhode Island. It operates a total of 579 licensed beds, 3,000 employees, and has annual operating revenues of approximately $300 million.
About Prospect Medical Holdings
PMH, headquartered in Los Angeles, California, is a healthcare company that owns and operates hospitals, physician networks, medical groups, clinics and outpatient centers in multiple markets in California and Texas.
Contact: R. Otis Brown 401-456-3070 or Ellen J. Shin Prospect Medical Holdings 310-943-4500