PROVIDENCE – The proposed sale of Landmark Medical Center and its affiliate, the Rehabilitation Hospital of Rhode Island, to the Boston-based Steward Health Care System was approved Tuesday by Superior Court Judge Michael A. Silverstein.
The final sale price was $71.6 million to $76.6 million, $10 million higher than first reported by the court-appointed special master Jonathan N. Savage. The extra money in the bid was part of a $10 million increase in the amount of project related capital, from $20 million to $30 million contained in the Steward bid, according to Bill Fischer, spokesman for Savage.
The proposed sale now moves into its regulatory phase, with a review by state authorities for compliance with the Hospital Conversion Act.
At the close of the court hearing Tuesday, Richard Licht, the R.I. Director of Administration, Steven M. Costantino, the secretary of the R.I. Office of Health and Human Services, and R.I. Attorney General Peter F. Kilmartin all declined to answer specific questions about the process and whether they anticipated any difficulty with closing the deal in the next 270 days.
Emphasizing the “great public concern” for maintaining a community hospital serving the people of northern Rhode Island, Silverstein dismissed objections raised by Blue Cross & Blue Shield of Rhode Island. Blue Cross attorney Joseph M.DiOrio had asked that the judge delay his ruling to allow for further examination of Steward’s bid by the health insurer. In denying DiOrio’s request, Silverstein said that Blue Cross was “in the catbird’s seat” regarding negotiations with Steward.
Silverstein also stayed any court action regarding legal action between Landmark and Blue Cross, pending the resolution of negotiations with Steward.
Christopher Callaci, general counsel for Local 5067 of the Northern Rhode Island Nurses and Allied Professionals, which represents about 600 workers at the two facilities, said that “hope and new confidence” had been voiced by hospital employees with the news on May 27 of Steward’s bid. The union had encouraged Steward to re-enter the bidding process.
Before announcing his decision, Silverstein asked Steward to address the court and talk about its plans for Landmark.
Robert Guyon, Steward’s chief operating officer, said that Steward, a $1 billion company, had a seasoned leadership team and a “100 percent” successful track record during the past 20 years, never having “left a hospital behind.”
“The employees have been quite anxious,” said Richard Charest, president of Landmark Medical Center, after the court ruling.
“Today is a decision that they can rely on, that Landmark will move forward and survive and continue as a full service community hospital,” he said.
