A federal judge has dismissed a lawsuit challenging the deportation of a Rhode Island kidney specialist who was denied reentry into the United States earlier this year.

Los Angeles-based Prospect Medical Holdings is asking a federal bankruptcy judge to either place two Rhode Island hospitals under state control or allow them to close, The Providence Journal reported Oct.

Massachusetts, one of the 20 states that sued over the administration's rules, anticipates $1.6 billion in grant funding this year alone.

The fate of two Rhode Island hospitals lies more than 1,500 miles away in Dallas where Rhode Island regulators and private attorneys are spending Tuesday hammering out a deal to keep the facilities open.

Prospective buyer arises Prospect as Prime Healthcare reviews purchase of Rhode Island hospitals amid bankruptcy and financing challenges.