Rhode Island Treasurer letter to Leonard Green & Partners regarding safety net hospital company Prospect Medical Holdings

Rhode Island Treasurer Seth Magaziner informed Leonard Green & Partners that the Rhode Island pension system will not consider future investments with the firm. This decision follows the firm's management of Prospect Medical Holdings, which Magaziner asserts extracted value from hospitals—including St. Joseph’s Hospital and Our Lady of Fatima Hospital—at the expense of patients and employees, leading to reduced healthcare resources for vulnerable communities and the insolvency of a hospital pension fund.

• Rhode Island Treasurer Seth Magaziner has decided that the Rhode Island pension system will not engage in any future investments with Leonard Green & Partners because the firm's practices regarding Prospect Medical Holdings are considered socially destructive.
• The management of Prospect Medical Holdings by Green Equity is alleged to have extracted value from hospitals, specifically St. Joseph’s Hospital and Our Lady of Fatima Hospital in Rhode Island, resulting in a decline in charitable care and the insolvency of the hospital pension fund, which caused some workers and retirees to face pension benefit cuts of up to 40%.
• Prospect Medical is alleged to have failed to meet obligations for promised capital improvements at Roger Williams Medical Center in the City of Providence and Our Lady of Fatima Hospital in the Town of North Providence.

APA

Magaziner, S. (2020). Rhode Island Treasurer letter to Leonard Green & Partners regarding safety net hospital company Prospect Medical Holdings. Private Equity Stakeholder Project. https://pestakeholder.org/news/rhode-island-treasurer-letter-to-leonard-green-partners-regarding-safety-net-hospital-company-prospect-medical-holdings-2/

Chicago

Magaziner, Seth. Rhode Island Treasurer letter to Leonard Green & Partners regarding safety net hospital company Prospect Medical Holdings. Private Equity Stakeholder Project, 2020. https://pestakeholder.org/news/rhode-island-treasurer-letter-to-leonard-green-partners-regarding-safety-net-hospital-company-prospect-medical-holdings-2/.

Wikipedia

{{cite press release |last1=Magaziner |first1=Seth |title=Rhode Island Treasurer letter to Leonard Green & Partners regarding safety net hospital company Prospect Medical Holdings |publisher=Private Equity Stakeholder Project |date=26 August 2020 |url=https://pestakeholder.org/news/rhode-island-treasurer-letter-to-leonard-green-partners-regarding-safety-net-hospital-company-prospect-medical-holdings-2/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{magaziner2020rhode, author = {Magaziner, Seth}, title = {{Rhode Island Treasurer letter to Leonard Green \& Partners regarding safety net hospital company Prospect Medical Holdings}}, publisher = {Private Equity Stakeholder Project}, year = {2020}, month = aug, url = {https://pestakeholder.org/news/rhode-island-treasurer-letter-to-leonard-green-partners-regarding-safety-net-hospital-company-prospect-medical-holdings-2/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }