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Prime Healthcare Signs Deal With Landmark Medical Center

Landmark Medical Center in Woonsocket, R.I., has signed an asset purchase agreement with Ontario, Calif.-based Prime Healthcare Services, according to a report by The Call.

Boston-based Steward Health Care System recently terminated its deal with Landmark, leaving the financially-troubled hospital without a potential partner to preserve its operations. Prime Healthcare was one of the four hospital organizations that originally bid on Landmark in 2011. In May 2011, Prime withdrew its bid for Landmark, citing difficulties in reaching an agreement with Blue Cross & Blue Shield of Rhode Island.

The asset purchase agreement was filed in Superior Court on Friday by court-appointed special master Jonathan Savage, according to the report. Judge Michael Silverstein is expected to schedule a hearing on the deal in about 10 days.

Arnie Kimmel, Prime Healthcare's senior vice president for development, told The Call that the deal includes a $60 million investment in Landmark over five years, plus a $2 million cash infusion to bolster operations in the short term. According to the report, court papers also say the deal includes $4.5 million for physician recruitment and $45 million for new technology, capital improvements and facilities upgrades. Prime has also pledged to pay no less than $4.4 million of the $7 million Steward loaned to Landmark.

More Articles on Landmark Medical Center:

Steward Health Care Terminates Acquisition of Landmark Medical Center in Rhode Island
6,100 Unite Behind Steward Health Care, Landmark Medical Center Acquisition
Landmark Medical Center, Blue Cross of Rhode Island Reach Contract Agreement

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