Capella may be third bidder for Landmark

WOONSOCKET – Capella Healthcare Inc., which owns 13 acute care hospitals in seven states, has expressed interest in making a bid in the financially strapped Landmark Medical Center in Woonsocket.
The Franklin, Tenn.-based company joins two other Tennessee for-profit hospital acquisition companies that have emerged as potential bidders for Landmark.
When asked to confirm the information, Beth Wright, Capella’s vice president of corporate communications and strategic marketing, said: “I can confirm that Capella Healthcare is in active discussions with many hospitals right now who are seeking strong partners to be better prepared for the future.”
“We continue to selectively seek to partner with hospitals and communities where our resources and expertise can make a significant difference. However, we are not at liberty to provide details on any specific hospital discussions at this time,” she said.
RegionalCare, a for-profit company based in Brentwood, Tenn., that owns four other community hospitals in the country, has signed a nonbinding, nonexclusive letter of intent to acquire Landmark and its affiliate, the Rhode Island Rehabilitation Hospital in North Smithfield, for an undisclosed sum. Both would become for-profit facilities.
A third Tennessee-based for-profit company, Transition Healthcare Company LLC, with headquarters in Franklin and backed financially by Falcon Investors, also may be interested in making a potential bid.
Thomas M. Reardon, a managing member, declined to comment, citing confidentiality issues. However, Maria Montanaro, president and CEO at Thundermist Health Center, reported that she was scheduled to meet with Reardon last week.
Transition had expressed interest in purchasing Landmark in March 2010.
Lifespan, Rhode Island’s largest hospital network, announced publicly last week that it would not be bidding for Landmark, citing the declining need for inpatient hospital beds and the potential high capital costs at Landmark’s facilities.
The court deadline for bids to purchase the financially troubled Landmark Medical Center was extended from March 25 to March 30.
The extension created “breathing room” to help attain the best possible bid, according to Bill Fischer, a spokesman for Landmark.