Last year, the for-profit Prime received court approval to buy the bankrupt, nonprofit Landmark, which has been in receivership for the past five years. However, state officials suspended the transaction from proceeding, saying Prime’s application to complete the deal was incomplete. Rhode Island regulators have also expressed concern over allegations that Prime hospitals in California systematically overbilled Medicare.
During the meeting, Prem Reddy, MD, CEO of Prime, insisted that his company could turnaround Landmark by “increasing the volume of patients and demanding higher payments from insurers,” the Providence Journal reported. He also said Prime has responded to federal investigations.
If the deal goes through, Prime said it will invest $30 million in capital investments at Landmark. It has also guaranteed to keep Landmark open for at least five years and to maintain its charity care policies.
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