Prime Healthcare Withdraws Landmark Bid

Only one bidder remains for purchase of Woonsocket's Landmark Medical Center, the financially troubled hospital courted by three buyers last month. Prime Healthcare of California announced in a letter Monday to Special Master Jonathan Savage, that it could not reach an agreement with Blue Cross Blue Shield of Rhode Island.

Judge Michael Silverstein was originally scheduled to announce a bidder on April 27, but , asking the three parties to settle outstanding bargaining agreements. Savage requested the opportunity to accept additional bids at the hearing, a plan which representatives from all three companies opposed. At that time, Silverstein sided with the bidders, prohibiting Savage from entering talks with any new prospective buyers.

At the , Silverstein announced in a brief statement that he was not satisfied with the results of negotiations. Transition Healthcare had been unable to negotiate an asset purchase agreement. RegionalCare had not come to an agreement with the nurses' union. And had still not reached a deal with Blue Cross Blue Shield of Rhode Island. The decision was again postponed, until May 27 and Silverstein told Savage he was free to enter talks with additional buyers.  

Prime Healthcare's withdrawal is the second since the May 10 hearing. Transition Healthcare pulled out on Friday, citing Silverstein's decision to allow Savage to accept offers from new bidders. The remaining bidder, RegionalCare, has still not come to and Allied Professionals or BCBS of RI. The union represents about half of the workers at the hospital and has declared that they will strike if a deal with RegionalCare is approved.