PROVIDENCE, R.I. (WPRI) -- Prospect Medical Holdings, the company who owns Fatima and Roger Williams hospitals under the banner of CharterCARE, has filed for Chapter 11 bankruptcy. "To effectuate the paths forward and ensure continued provision of critical and tailored healthcare, Prospect Holdings and certain of its subsidiaries initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Northern District of Texas," Prospect announced on their website. The company also faced financial problems before this filing, owing $17 million to its vendors. READ MORE: Back-to-back decisions in RI are Prospect Medical’s latest financial headache Otis Brown, a spokesperson for Prospect CharterCARE, said this news "has no immediate impact on the operations of CharterCARE Health Partners." "Our hospitals, programs, and physician practices are fully operational, busy, and actively treating patients, from emergency services to cancer care," Brown explained. "Rhode Islanders should have confidence that they can continue to seek high quality, nationally recognized care across our system of hospitals and outpatient services." Before the filing, Prospect was in the final stages of selling both hospitals to the Georgia-based Centurion Foundation. A deal has not been finalized yet. ALSO READ: Roger Williams, Fatima hospitals sold to nonprofit Centurion Foundation The announcement led to several elected officials and the United Nurses and Allied Professionals (UNAP) putting out statements. R.I. Attorney General Peter Neronha said in his statement that Prospect intends to go forward with its sale of the hospitals to Centurion. Neronha also said his office expects both hospitals "to operate as normal" for the immediate future. "I know that the word 'bankruptcy' can be frightening to many, especially when paired with a potentially unknown future of two hospitals that are integral to the survival of Rhode Island’s healthcare system," Neronha added. "But I'll say again what I said earlier this week: this Office is prepared for all scenarios." UNAP called on state leaders "to immediately come up with a plan to keep" the hospitals "open and operational regardless of what happens with this bankruptcy." "And we’re calling on Prospect to do right by Rhode Island and keep these facilities open until the sale to Centurion Foundation is final," the union added. "Our union will do all we can to secure the future of these health care facilities, ensure we protect these jobs and continue providing critical care for the families who depend on them." U.S. Sen. Sheldon Whitehouse also weighed in, saying during his time chairing the Budget Committee, "we investigated what happens when private equity companies and health care operators like Prospect take over facilities and bleed them dry." "The positive news for Rhode Islanders is that the conversion process for local Prospect-owned hospitals was already well under way, and disruption to the state’s health care system can be minimized," Whitehouse said. "But as we make decisions about our health care system moving forward, we need to be very clear that the priorities for a hospital must be its patients and workers – not greedy private equity investors." R.I. Senate President Dominick Ruggerio, who represents a district that contains Fatima, said the filing "is not unanticipated" and he's been in close contact with Neronha on this issue. "My highest priority continues to be the continuity of health services provided at Fatima and Roger Williams hospitals," Ruggerio added. "I'm very grateful to the Attorney General for his strong leadership, his preparation for every eventuality, and his ongoing diligence as we work towards our shared goal of a transfer of these hospitals to a responsible new owner." NEXT: Crews respond to 2-alarm fire at North Attleboro home Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Daily Roundup SIGN UP NOW