Rhode Island has fined a healthcare system $1 million for converting two hospitals to not-for-profit status without state approval.
The state Department of Health said Monday it signed a consent agreement with California-based Prime Healthcare Services, the hospitals' parent.
The department says the for-profit system transferred the hospitals to its not-for-profit foundation Dec. 31, 2016, the same day it applied to the state for permission to make the conversion.
Prime Healthcare owns Landmark Medical Center in Woonsocket and Rehabilitation Hospital of Rhode Island in North Smithfield.
The application for not-for-profit status is pending.
Prime Healthcare officials say they want to move the application forward and remain committed to the community.
The health department says the fine is the largest levied in at least 30 years, and it needs accurate information about healthcare systems to ensure accountability and stability of facilities.
