Prime's Landmark Deal Wins Final Approval from AG

Attorney General Peter F. Kilmartin announced his approval of the proposed sale of Landmark to Prime Healthcare Services for approximately $60 million late Monday afternoon.

The $60 million includes Prime's commitment to make $30 million in capital improvements, $4 million in position recruitment and pays off a number of loans from firms that kept the hospital afloat as the companies explored possible purchase of the facility.

“Clearly, a five year special mastership for any business is not an ideal situation and is not the model which others should endeavor to match,” said Kilmartin, referencing the protracted effort to rescue the failing non-profit hospital through investment by a for-profit medical corporation. During that process, Landmark was the focus of several suitors, including Steward Healthcare , which backed out before Prime made its most recent bid.

“An enormous amount of dedication and commitment from so many has produced today’s accomplishment. In particular, I want to thank our employees whose hard work and patience helped us persevere through the daunting challenges of the past five years.  I also want to thank Dr. Reddy and his entire management team at Prime Healthcare Services for their unwavering commitment and support of our hospitals, without it, it is difficult to envision how we would have survived,” said Rick Charest, president and CEO of Landmark Medical Center and the RHRI.

Monday was the statutory deadline for Kilmartin's decision. On Friday, the RI Department of Health offered their approval of the deal, with several conditions.

Kilmartin attached his own conditions to his approval: Prime must transfer certain charitable assets to the Rhode Island Foundation for disbursement, provide information about any actions taken against Prime or any final resolution to the investigation currently being conducted by the Department of Justice and Office of Inspector General regarding coding at Prime’s hospitals, and that Prime inform the Attorney General of any actions taken against it or any of its hospitals or affiliates by any governmental entities.  

Landmark's Special Master Jon Savage will now file a petition with the court requesting authorization to close the sale, establishing a closing deadline.  The parties are requesting that the court approve a closing date of no later than Dec. 31, but are targeting Nov. 30 as their preferred closing date. 

“I am thrilled that the state approvals are all in place,” said Representative Baldelli Hunt (D-Dist. 49, Woonsocket). “This is a big win for the people of our city, who can have peace of mind that first-rate health care will still be available without traveling to Providence, especially in an emergency where every minute is critical. It is also very gratifying that the city’s second-largest employer, with 1,100 workers, will remain vibrant and continue to offer good-paying jobs for the many city residents who are employed at Landmark and its rehabilitation facility.”

Baldelli Hunt pointed out that once Prime becomes the owner, as a for-profit operation it will be required to pay real estate taxes to the city on property currently assessed at $27.3 million.

Mayor Leo Fontaine greeted the final approval of the Landmark Hospital sale as one of the most important, if not the most important, news items of the last several years. “It is hard to put into words just how important it is that the Department of Health and the Attorney General have signed off on the Landmark deal,” the Mayor said, “after all these years of uncertainty for the employees, patients and people of the City, I am happy and thankful that the authorities have given Landmark the go-ahead and our community hospital will remain open,” Fontaine said in a release.

“Over these past several years, I have met with many hospital company owners and managers and testified at numerous hearings, as have members of my administration, the General Assembly delegation, and many, many citizens of the City and nearby communities, to support a new owner taking over Landmark and keeping it open for our City.  Working together we have accomplished a truly great thing for Woonsocket.  I also want to recognize the hard  work of Woonsocket Economic Development Director Matt Wojcik and State Senator Roger Picard who have both worked diligently throughout this ordeal,” Fontaine said. 

“In conclusion, and this is the best saved for last, I want to welcome Prime Health Care System to the City of Woonsocket.  Congratulations, and we look forward to working with you,” Fontaine added.