Superior Court orders medical company to pay millions in unpaid bills

PROVIDENCE, R.I. (WLNE) — The Rhode Island Superior Court ordered Prospect Medical Holdings to pay $17 million in unpaid bills.

Attorney General Peter Neronha said the company owes the money to vendors of both Our Lady of Fatima Hospital and Roger Williams Medical Center.

He added that the money must be payed within 10 days of the court’s decision.

A full statement from Neronha can be read below:

“I appreciate Judge Stern’s decision and careful consideration of this matter. As we argued, and the Court ordered, Prospect Medical Holdings must comply with our 2021 HCA decision, including paying $17 million within the next 10 days for outstanding invoices owed to vendors of Our Lady of Fatima Hospital and Roger Williams Medical Center, to facilitate the continuation of safe, reliable patient care at these two essential safety-net hospitals. The decision unambiguously and correctly concludes that Prospect repeatedly failed to comply with important conditions set in our 2021 decision.”

“As Judge Stern held, and we argued, ‘Respondent’s use of the Hospitals as a private bank and treatment of accounts payable as a credit facility loan in violation of the Conditions and the HCA constitutes irreparable harm…’ The Court also confirmed the wisdom of our requirement that Prospect put $80 million in escrow in 2021, subject to our control, when it noted ‘[the Attorney General’s] trepidation in approving [Prospect’s] purchase of the Hospitals has proven to be well-placed as [Prospect] benefits from the Hospitals’ government assistance while refusing to pay the Hospitals’ expenses.'”