Health Department Subcommittee Approves Landmark Medical Center Sale

Ontario, Calif.-based Prime Healthcare Services' proposed purchase of Landmark Medical Center in Woonsocket, R.I., has received approval from a subcommittee of the Rhode Island Department of Health advisory council, according to a Providence Journal report.

The full Health Services Council will vote on the potential sale next week, according to the report. Last year, the for-profit Prime received court approval to buy the bankrupt, nonprofit Landmark, which has been in receivership for the past five years. However, state officials suspended the transaction from proceeding, saying Prime's application to complete the deal was incomplete. Rhode Island regulators have also expressed concern over allegations that Prime hospitals in California systematically overbilled Medicare.

In July, Prem Reddy, MD, CEO of Prime, told the Department of Health his company would increase the volume of patients at Landmark and demand higher payments from insurers. He also said Prime had responded to federal investigations.

If the deal goes through, Prime has said it will invest $30 million in capital investments at Landmark.

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