Rhode Island Fines Prime Healthcare For Illegally Converting Hospitals To Non-Profit Status

On October 30, 2017, the Rhode Island Department of Health (RIDOH) fined Prime Healthcare $1 million for illegally converting hospitals to non-profit status. Prime Healthcare stands accused of knowingly giving false or incorrect information as it pertains to the Hospital Conversion Act. The Hospital Conversion Act requires that “certain transfers in ownership, assets, membership interest, authority or control of a hospital in Rhode Island requires approval by both the Department of Health and the Rhode Island Department of the Attorney General (RIAG) under the authority of the Hospital Conversions Act (Chapter 23-17.14). Additionally, certain transfers in ownership . . .