Business & Tech

Landmark Merger Application Deemed Incomplete

Hospitals must return revised application to the Department of Health by Dec. 27.

It has been a long process, and it's not over yet.

The purchase of Landmark Medical Center by Stewart Health Care System has been delayed, thanks to an "incomplete" application filed with the Rhode Island Department of Health, Megan Hall of WRNI reports in her news blog.

The snag is the latest in what has been a lengthy ordeal to secure a buyer for the struggling Woonsocket hospital. After three years in receivership and numerous failed bids, Superior Court Judge Michael Silverstein of the sale for $71 million to the Massachusetts-based hospital chain in May. The sale will not be complete, however, until it is approved by both the Rhode Island Department of Health and the Attorney General's office, a process expected, in ideal circumstances, to take somewhere between six and nine months.

A merger application was submitted on Oct. 17, and RIDOH had 30 business days to review the document and approve or deny the agreement. The department sent a confidential letter to both hospitals last Thursday calling the application "incomplete" and requesting adjustments.

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During hearings on the matter, Landmark representatives painted a grim picture of life in hospitals with scarce resources where workers were rapidly losing confidence and looking for alternate work. Now, as WNRI's Hall points out, the process of gaining approval from RIDOH could extend their struggles indefinitely. A similar deal between Care New England and Lifespan was ultimately abandoned after about two years of trying to get a merger approved.

The hospitals now have until Dec. 27 to resubmit the application and then RIDOH will have an additional 10 days to respond.

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