OAG’s investigation of the issue of potentially excessive fees prompted Ascension in December 2018 to forgive $130 million in debt that Providence owed the health network. Expert review revealed that some of the fees Ascension charged Providence were likely excessive. It also conducted sworn interviews of the leadership teams of both Providence and Ascension. OAG subpoenaed documents related to the Providence Hospital’s governing history, reasons for closing, and finances. The investigation then expanded to consider whether Ascension imposed excessive fees on Providence in an attempt to improperly remove nonprofit assets from the District. OAG initially opened an investigation into whether Ascension acted improperly when it installed a new board of directors to wind down the hospital’s operations, and whether it gave proper notice to Providence donors regarding the closing. District law also prohibits a District nonprofit (like Providence) that is winding down from transferring assets to a parent nonprofit incorporated outside of the District (like Ascension).
The Attorney General can intervene on behalf of the public interest if a nonprofit operating in the District violates the law or its own bylaws, or if it otherwise fails to fulfill its charitable purpose. Under District law, OAG is responsible for protecting District nonprofit organizations and their assets. The circumstances around Providence’s closure raised concerns with the Office of the Attorney General (OAG). When Providence’s own Board of Directors protested the hospital’s closure, Ascension fired and replaced a majority of Board members. Many were concerned that the largely Black and lower-income patients who depended on Providence would no longer be able to access care. Providence, which Ascension has controlled since January 2000, is one of the District’s oldest nonprofit entities, founded in 1861 at the urging of President Lincoln.Īscension’s announcement that it was closing the hospital was met with widespread criticism from the community, healthcare professionals, and local elected officials. It was also just one of just two remaining hospitals on the city’s East side. Providence, located in Ward 5, was the District’s longest continuously operating hospital. In 2018, Ascension Health, a national nonprofit healthcare network based in Missouri, announced it would be closing Providence Hospital, a large nonprofit hospital it owned in the District.
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