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Prospect Medical To Acquire CharterCARE Health Partners

Analysis  |  By Amanda Schiavo  
   December 01, 2022

Financial terms of the deal were not disclosed, however, to close the acquisition, the Centurion Foundation will establish CCHP as a 501(c)(3) organization.

Prospect Medical Holdings—an independent physician association—and the Centurion Foundation—a Georgia-based 501(c)(3) nonprofit dedicated to providing facilities for healthcare systems—have come to an agreement in which Centurion will acquire CharterCARE Health Partners—a Rhode Island-based health system—from Prospect for an undisclosed amount.

The asset purchase agreement also includes CharterCARE’s related businesses, real estate assets, physician clinic operations, and outpatient services. The deal is subject to customary regulatory approvals, including reviews by the Rhode Island Department of Health and the Rhode Island Attorney General.

"CharterCARE is excited at the potential of this proposed acquisition, which allows us to build on Prospect’s significant investment in Rhode Island healthcare," Jeffrey Liebman, CharterCARE CEO, said in a release announcing the deal. "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."

Centurion will make CharterCARE Health of Rhode Island a 501(c)(3) organization in order to acquire it from Prospect. If the deal closes, the system will become a nonprofit health system with the goal of increasing healthcare access and lowering the cost of 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.

"Centurion was created for this exact purpose, to partner alongside providers and communities in creating equitable and cost-effective solutions," Ben Mingle, Centurion Foundation President, said in the release. "We believe strongly in the mission of CharterCARE and look forward to the opportunity of engaging in a long-term relationship with the community."

Amanda Schiavo is the Finance Editor for HealthLeaders.

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