Providence, R.I.-based Prospect CharterCare filed an application to buy Johnston, R.I.-based Blackstone Valley Surgicare, prompting The United Nurses and Allied Professionals to object to the sale, according to Providence Journal.
Here are six highlights:
1. The deal is approximately $1.5 million.
2. On March 20, 2017, the Rhode Island Department of Health recommended Health Director Nicole Alexander-Scott approve the sale.
3. The United Nurses and Allied Professionals filed an objection to the state health department, arguing Prospect CharterCare has not provided the necessary information to evaluate the physician practice's financial state and ability to maintain the continuity of care.
4. Specifically, UNAP cites Prospect CharterCare's failure to address questions on its application concerning various investigations. The investigations related to Prospect CharterCare's parent, Prospect Medical Holdings', affiliate hospitals in California.
5. UNAP also cited a 2016 report in which Moody's investors rated Prospect Medical negatively due to "the company's heavy reliance on debt to finance a series of large acquisitions," according to Providence Journal.
6. An attorney representing Prospect CharterCare said UNAP's claims are invalid and the state health department reviewed their application and found it "acceptable."