State Grants Two Week Extension For Landmark Purchase Application

The application for the purchase of Landmark Medical Center by Steward Health Care System remains incomplete and state officials granted the hospitals a two-week extension today for filing outstanding paperwork.

Superior Court Judge Michael Silverstein l of the deal in May, through which the Massachusetts-based health care chain is expected to buy the Woonsocket hospital for $71 million. After three years in receivership, the proposed purchase was considered positive news for the financially challenged facility.

Under the R.I. Hospital Conversions Act, however, the sale must first be approved by the Department of the Attorney General (AG) and the Rhode Island Department of Health (HEALTH), a lengthy process from which similar acquisition deals have never emerged. The 1997 law demands close government scrutiny of any proposed change in ownership of a licensed hospital.

The hospitals submitted a merger application on Oct. 17, after which the state was given 30 days to review the information and respond. Just days before the deadline on Nov. 15, RIDOH requesting adjustments to the document.   

A joint press release HEALTH and the AG's office today stated that the paperwork "remains incomplete" and that state officials have granted the one-time two-week extension to the transacting parties "in an effort to keep this application moving forward."

DOH officials have not publicly disclosed what's missing from the document, stating only that the hospitals must produce the requested information to allow the formal review of the application. Past merger plans remained stuck in the extensive state approval process for up to two years. One such prospective deal between Care New England and Lifespan fell through in 2010 after several delays.

“This is a one-time extension that takes into consideration and recognizes the importance of Landmark Hospital to the Woonsocket community and the three years that the hospitals have been in a court-appointed special mastership,” said Director of Health Michael Fine, MD in the release. “We are providing this opportunity as a continuation of our collaborative efforts to assure that essential healthcare services in northern Rhode Island remain available.”

The hospitals had until Dec. 27 to submit the corrections but with the new extension, the information is due by Jan. 11, 2012.