Hospital owner to pay $27M settlement in unfunded-pension lawsuit

The company that owns Fatima Hospital and Roger Williams Medical Center has agreed to pay $27.25 million to the insolvent St. Joseph's pension plan to settle a lawsuit.

Prospect Medical Holdings, the California-based company that bought a controlling stake in CharterCARE Health Partners in 2014, will receive the remaining 15% minority stake in the hospital's assets.

Angell Pension Group, the Providence firm that administered the pension fund, will pay $2.75 million to resolve the claims against it.

The settlement must still be approved by both federal and state courts.

The St. Joseph pension, which funds the retirement benefits of about 2,700 current and retired employees at Fatima and the former St. Joseph Hospital in Providence, was put into receivership in 2017 after administrators said they would need to slash benefits by 40% to keep it from running out of money.

Read more: https://www.providencejournal.com/story/news/local/2021/01/08/hospital-owner-pay-27-m-settlement-unfunded-pension-settlement/6564295002/