Prime announced its plans to acquire Memorial last April. Boston-based Partners HealthCare plans to acquire the remaining CNE hospitals as CNE works to improve its finances.
CNE spokesman Jim Beardsworth told WPRI via email the proposed sale of Memorial “will address a solution for Memorial’s pension.” However, he did not provide further details.
Memorial’s pension plan has declined over the years. The plan’s shortfall was $65 million in 2012 compared to $76 million as of September 2016, according to WPRI, which cites annual reports. Annual benefit payments and other expenses increased during that time period, from $3.9 million to $7.6 million. WPRI reports CNE anticipates contributing $7 million to the plan this fiscal year.
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