Financially Troubled Rhode Island Hospital Gets New Buyer
WOONSOCKET, R.I. (CBS) –Landmark Medical Center in Woonsocket, Rhode Island has a new buyer after a for-profit Massachusetts hospital group backed out of a deal to acquire the troubled facility.
California-based Prime Healthcare Services signed a new purchase agreement on Thursday, the same day that Steward Health Care walked away. Prime plans to invest $60 million in the medical center over 5 years. Company officials say there should be no reductions in services, but there has been no decision on staff cuts.
Landmark will have to repay Steward a $7 million loan used to eliminate debt and keep the hospital open.
Landmark has been in receivership for four years. The purchase agreement still has to win court approval.