Care New England to close hospital after sale to Prime Healthcare collapses

Providence, R.I.-based Care New England plans to close Memorial Hospital in Pawtucket, R.I., after a deal fell through to sell the hospital to Prime Healthcare Foundation, the Ontario, Calif.-based nonprofit arm of Prime Healthcare Services.

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Earlier this year, Care New England announced plans to sell Memorial Hospital to Prime Healthcare Foundation and divest the rest of its hospitals to Boston-based Partners HealthCare. However, after it was unable to reach a final agreement with Prime, Care New England’s board of directors voted Monday to close Memorial Hospital, according to WPRO News.

“The magnitude of the losses at Memorial cannot be sustained and jeopardizes our other hospitals and provider organizations,” said Charles Reppucci, Care New England board chairman, according to the Providence Journal. “We have exhausted our very best efforts and those of some nationally-recognized consultants to improve the situation without the outcomes we had hoped to achieve.”

It was not immediately clear when the hospital will close. Care New England told the Providence Journal it is unable to estimate how many employees will be affected by the closure until transition plans are developed.

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