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Rhode Island Judge Expected to Rule on Landmark Medical Center Sale This Month

Rhode Island Superior Court Judge Michael Silverstein will hold a hearing later this month concerning Ontario, Calif.-based Prime Healthcare Services' purchase of Landmark Medical Center in Woonsocket, R.I., according to a Providence Journal report.

On Nov. 26, Judge Silverstein will consider a petition seeking permission to close the sale. Blue Cross Blue Shield of Rhode Island has filed a limited objection related to $3 million it says it's owed as a creditor, although the insurer supports the sale, according to the report.

The for-profit Prime, which operates 23 hospitals, received court approval last year to buy the bankrupt, nonprofit Landmark, which has been in receivership for the past five years. However, state officials suspended the transaction from proceeding this past April, saying Prime's application to complete the deal was incomplete.

Under the asset purchase agreement, Prime will invest $30 million in technology and capital improvements over the first five years. Prime will also provide at least $4.5 million for physician recruitment, $15 million for routine replacements at Landmark and pay off millions in Landmark debt. The company will also operate Landmark as an acute-care hospital for at least three years.

The Rhode Island Department of Health approved the sale late last month. Landmark spokesman Bill Fischer said the healthcare organizations have set a goal to close the sale Dec. 31, although they would prefer to close Nov. 30, according to the report.

More Articles on Landmark Medical Center:
Rhode Island Approves Prime's Acquisition of Landmark Medical Center
Rhode Island Citizens Push for Landmark Medical Center Sale
Health Department Subcommittee Approves Landmark Medical Center Sale 

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