Memorial Hospital Completes Merger With Care New England
Providence, R.I.-based Care New England Health System has finalized its partnership with Memorial Hospital of Rhode Island in
Care New England and
The Rhode Island Department of Health approved the affiliation in June. Under the acquisition agreement, Care New England will not pay for debt financing but will refinance or discharge $11 million of Memorial's bond debt and cover its estimated $27 million to $36 million operational deficits through Sept. 30, 2016.
Additionally, Care New England's board will grow by four seats and govern Memorial, which will nominate three at-large directors for Care New England approval. Memorial will freeze its defined benefit pension plan and isn't expected to receive capital investments from Care New England as part of the transaction, but it will continue all current service lines. Memorial will also keep its teaching affiliation with
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