LANDMARK MEDICAL CENTER finalized its sale to California's Prime Healthcare Services on Tuesday. The final acquisition package included money for capital improvements, including renovations and new equipment purchases.
WOONSOCKET – Five years after Landmark Medical Center petitioned court-supervised receivership to help the struggling community hospital stay afloat while it sought an acquisition partner, Landmark finalized its sale on Tuesday to Prime Healthcare Services of Ontario, Calif.
The final acquisition package included money for capital improvements, including renovations of Landmark’s main lobby, four nursing units, the diagnostic service area, and the emergency room entryway and waiting room, according to Landmark President and CEO Richard Charest.
In addition, Prime will provide for the purchase of new equipment, including a new telemetry system that has already been installed at the hospital.
“Today is a tremendous day for our employees and residents of the northern Rhode Island community,” said Charest in a statement. “With the clinical and operational expertise and financial commitment from Prime Healthcare combined with the dedication of our employees and physicians, our facilities will be able to provide the highest quality health care for years to come.”
Upon its acquisition of Landmark and the Rehabilitation Hospital of Rhode Island, Prime assumes the hospital’s debts incurred after Landmark entered receivership in June 2008. Financial obligations dating to before that period are being resolved by Special Master Jonathan N. Savage’s office, Charest said.
Through their subsidiaries, Prime Healthcare Services and its nonprofit arm Prime Healthcare Foundation now employ more than 30,000 people and own and operate 25 hospitals.
“Prime Healthcare looks forward to working with the medical staffs and employees to make these two health care facilities the best in Rhode Island and the nation,” said Dr. Prem Reddy, chairman, president and CEO of Prime Healthcare. “Prime Healthcare’s motto is saving hospitals, saving jobs and saving lives, and we take this responsibility very seriously.”
The official closing on New Year’s Eve followed the final approval of the sale last month by a R.I. Superior Court judge. The court approval ended five years of court-supervised receivership and settled Blue Cross & Blue Shield of Rhode Island’s claims of outstanding money owed it.
Prime has renegotiated a contract with Blue Cross including a stipulation that Landmark remain a part of Blue Cross & Blue Shield of Rhode Island’s subscriber network for two more years, Charest said.
Landmark Medical Center treats about 45,000 patients in its emergency room each year.