New Landmark buyer emerges after deal falls apart
Saturday, September 29, 2012
WOONSOCKET, R.I. (AP) — A new buyer has emerged for Woonsocket's troubled Landmark Medical Center after a for-profit Massachusetts hospital group backed out of a deal to acquire the hospital.
The Providence Journal reports that Landmark signed a new purchase agreement with California-based Prime Healthcare Services on Thursday, the same day Steward Health Care System formally withdrew its purchase plans.
A senior Prime executive tells the paper Friday the company plans to invest $60 million over five years. It doesn't expect to reduce services but hasn't made a decision about staff cuts.
Landmark has been in receivership since 2008, and any purchase agreement has to win court approval.
The paper reports that Landmark will have to repay Steward a $7 million loan used to eliminate debt and pay operational costs and salaries.
Information from: The Providence Journal, http://www.providencejournal.com
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