Could Landmark's Struggles Be Over?

It hasn't been easy for workers at Landmark Medical Center to stay optimistic.

For three years, nurses, doctors, administrators and other staff have watched attentively as purchasers for the facility come forward, and then withdraw, bids for the cash-strapped hospital.

After two years of negotiations, a deal with Caritas Christi Health Care fell through last December when the would-be purchaser said they could not reach an agreement with Blue Cross Blue Shield of Rhode Island (BCBSRI.)

The process began again, and several new bidders came forward. A buyer was expected to be announced in an in Superior Court by Judge Michael Silverstein.

But Silverstein found that none of the possible purchasers had completed the required negotiations and asked the bidders to improve their offers and return on May 10.

On May 10, the decision was , and once enthusiastic buyers began to back out. Frustrated with the process after Silverstein  ruled that Special Master Jonathan Savage could continue to court offers, Transition Healthcare left the bargaining table.  , also claiming to be unable to reach an agreement with BCBS of RI.

As of last week, the only remaining bidder, RegionalCare Hospital Partners of Tennessee, had been unsuccessful at reaching a deal with the union representing roughly half of the hospital's 1,200 plus workers, United Nurses and Allied Professionals (UNAP.) The group had declared they would strike if purchase by RegionalCare was approved.

All the while, Landmark's staff continued to serve the sick and injured of Woonsocket and the surrounding community, actually increasing the number of patients serviced. Staff stayed loyal and committed to the facility - until recently.  

Savage, who was appointed by the court to run the hospital, recounted this tale at yet another hearing on Landmark's future last Friday. Instability created by the union battle with RegionalCare and the withdrawal of several bidders, Savage explained, had destroyed morale, leading 15 key employees to jump ship in recent weeks and many more to take leave.

The story set the stage for what Savage presented as very promising news for the hospital: a signed asset-purchase agreement for between $62 million to $66 million by  Steward Health Care Systems of Boston, now the owner of Caritas Christi, along with a $1 million deposit handed to the special master around 4 p.m. Thursday. The chain has turned around six struggling hospitals in recent years and Savage said the deal contained no contingencies that would enable Steward to walk away.

"By a stroke of good fortune, we find ourselves in a position where Steward has come forward," Savage said.

The deal, if successful, will be the first time a hospital in Rhode Island converts from nonprofit to for-profit status. State law dictates close scrutiny of such transactions and regulators are expected to require an estimated six to nine months to review the purchase. Steward has offered enough cash to run the hospital during the interim.

Both UNAP counsel, Christopher Callaci, and hospital president Richard Charest came forward to urge Silverstein to expedite approval of the sales agreement.

"I fear employees and patients are losing confidence," Callaci said. "I fear they are losing hope. This is an extraordinary opportunity to bring this process to a successful conclusion."

The court and state regulators spent the holiday weekend reviewing the offer and Silverstein is expected to issue a decision in Superior Court at 2 p.m. today.