The Rhode Island Department of Health granted Woonsocket, R.I.-based Landmark Medical Center and North Smithfield-based Rehabilitation Hospital of Rhode Island — two of Ontario, Calif.-based Prime Healthcare Services' Rhode Island hospitals —nonprofit status, according to The Valley Breeze.
While Prime Healthcare initially applied to convert its two Rhode Island hospitals to nonprofit entities in December 2016, the change wasn't approved until Dec. 15, 2017.
The approval comes less than two months after the state department of health fined Prime Healthcare $1 million for violating a Rhode Island law that requires state approval prior to converting hospitals to nonprofit entities. According to state officials, Prime Healthcare illegally transferred Landmark Medical Center's assets to its nonprofit arm, Prime Foundation, immediately after filing the application to convert the facility back to a nonprofit, rather than waiting for state approval.
Nicole Alexander-Scott, MD, the director of the state department of health, issued the status change with a long list of conditions. Under the conditions, the two hospitals must remain open for at least five years and must participate in various health-related initiatives such as the Prescription Drug Monitoring Program.
The change will be effective Jan. 1, 2018.
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