Independent Review Finds Prospect Has “Met and Exceeded Requirements” of $100 million Rhode Island Investment
PROVIDENCE, RI – Prospect CharterCARE has met or exceeded the conditions required for Prospect’s 2014 acquisition of CharterCARE facilities including Roger Williams Medical Center, Our Lady of Fatima Hospital, Southern New England Rehabilitation Center, and St. Joseph Health Center. Primary among these conditions was the pledge by Prospect to invest at least $100 million in the facilities in the four years post-acquisition.
Affiliated Monitors, Inc., an independent organization hired by the Rhode Island attorney general issued a report verifying Prospect’s compliance with the conditions of its 2014 acquisition. The report confirms Prospect’s commitment to ensure access to high-quality, affordable care to all Rhode Island patients and supports Prospect’s application for a change-in-control of CharterCARE under the state’s Hospital Conversions Act. The report’s key findings include:
Prospect CharterCARE Exceeded its Long-Term Capital Commitment
- "The documentation submitted demonstrates that Prospect complied with and exceeded the amount specified in this condition.”
Short- and Long-term Capital Expenditures Were Met and Exceeded
- "Prospect provided sufficient documentation to support its expenditure of at least $10 million per year for fiscal years 2015 – 2018 on routine equipment and infrastructure, software and licenses, and the running of newly acquired physician practices." Prospect’s submissions confirmed an actual total capital expenditure of $115.2 million in the relevant period compared to the $90 million commitment made by Prospect at the time of entering into the transaction.
Additionally, the report concluded that overall, Prospect more than proved its commitment to healthcare in Rhode Island, noting, “Prospect met is commitment (as) an important healthcare resource serving the Rhode Island community. They not only shored up aging buildings, (but) helped the hospitals sustain and grow their outreach services, attracted new physicians, and established a business entity for the physicians to negotiate with health insurance payors (including Medicare), thereby making the practices more accessible to local residents.”
“We note (this commitment) not only in the key measures (such as the capital commitments) but also in less obvious areas (such as continuing education for its staff, participation in community health initiatives, and (the) provision of employee benefits). Prospect has demonstrated its compliance with the terms and conditions of the conversion.”
Prospect appreciates the report’s confirmation that we have been, and continue to be, an organization that delivers on its commitments.