Providence, RI — Hundreds of nurses, technicians, and support staff rallied at the Rhode Island State House on Saturday, urging state leaders to step in after Prospect Medical Holdings filed for bankruptcy and warned it could transfer or close two Providence-area hospitals as soon as December 1.
The United Nurses and Allied Professionals (UNAP), which represents nearly 1,200 workers at Our Lady of Fatima Hospital in North Providence, Roger Williams Medical Center in Providence, and Prospect Home Health and Hospice, called the situation a public health emergency. The union says years of underinvestment and mounting debt at Prospect have left the hospitals understaffed and vulnerable.
Bankruptcy filing raises shutdown threat
Prospect’s October 31 filing in U.S. Bankruptcy Court in Delaware seeks court permission to reject leases and hand operations of the Rhode Island facilities to the state or, failing that, wind them down. The move follows failed sale attempts over the past year, including a proposed deal with Prime Healthcare that fell apart in June.
Rhode Island Attorney General Peter Neronha pledged to fight any closures. “We will fight this in court tooth and nail,” he said in a statement Friday, warning that shutting the hospitals would “devastate Providence.” Gov. Dan McKee’s office called the situation “critical” and said the administration is coordinating with the attorney general and the Rhode Island Department of Health (RIDOH) on next steps, including potential emergency funding.
Workers press for state action
UNAP leaders are asking lawmakers for $50 million in bridge financing to stabilize operations, a moratorium on closures under the state’s Hospital Conversions Act, and federal oversight from the Centers for Medicare & Medicaid Services. Union members voted 98% to authorize a strike on October 15, though no walkout has been set.
“Prospect has bled these hospitals dry,” UNAP President Patricia Richmond said at the rally, arguing the company siphoned funds while staff endured heavy workloads and delayed repairs. Staff described 12-hour shifts amid 20% staffing gaps and ambulance diversions at Roger Williams. “These aren’t just buildings; they’re lifelines for our community,” said Maria Gonzalez, a nurse of 15 years at Fatima.
Prospect pushed back in a statement, saying it has invested $50 million in the facilities since 2017 and that bankruptcy was a “last resort” driven by unsustainable Medicaid rates. The company said it is seeking a responsible transition to avoid abrupt closure.
What’s at stake for patients
Fatima (477 beds) and Roger Williams (200 beds) together account for roughly 10% of Rhode Island’s acute-care capacity and serve more than 50,000 patients a year, according to industry data. Fatima’s patient population is majority Medicaid, while Roger Williams handles significant volumes of complex and infectious disease cases.
Healthcare leaders warn that losing the two facilities would stress the entire Providence region. UNAP estimates emergency room wait times in the city could jump by up to 40% if patients shift to Rhode Island Hospital and other systems. RIDOH data show the statewide nurse vacancy rate is around 15%, leaving limited cushion to absorb displaced patients. The union and patient advocates also fear spillover to long-term care and hospice, where staffing is already tight.
Legal and regulatory hurdles ahead
Any closure or transfer of ownership in Rhode Island requires approval from RIDOH and the attorney general under the Hospital Conversions Act, which examines community impact and continuity of care. Federal rules generally call for 90 days’ notice for hospital closures; Prospect has asked the court for relief from certain requirements, according to filings.
A first bankruptcy hearing is scheduled for November 7. RIDOH officials have begun on-site reviews of emergency readiness, according to state communications, while UNAP plans additional demonstrations on November 5. Attorney General Neronha has signaled he may pursue litigation to prevent shutdowns, citing consumer protection and safety-net obligations.
As the court process begins, the immediate question is whether stopgap state funding can keep doors open long enough to secure a new operator. The governor’s team noted that Rhode Island maintains a sizable rainy-day fund, but any rescue package would require legislative buy-in. For workers and patients, the timeline is tight—and the stakes, they say, could not be higher.
