A judge has approved a $69 million "stalking horse" bid from Lawrence & Memorial Hospital in New London, Conn., to buy Westerly (R.I.) Hospital out of receivership, according to a Providence Business News report.
L&M's bid includes assuming $22 million of Westerly Hospital's debt.
The bid will be used as a base for other competing bids. Other suitors have until July 30 to submit their bids, and a sale hearing is scheduled for August 13. Prior reports have said five to six hospitals have already submitted bids for the hospital.
Superior Court Judge Brian Stern reserved the right to make a final decision not on the highest bid, but what is in the best interests of the state, according to the report.
Westerly and L&M considered a strategic alliance in August 2011, but negotiations came to an abrupt end when Westerly voluntarily entered receivership and came under the control of a court-appointed special master.
The hospital's special master, Mark Russo, has previously said the best-case scenario is if an existing healthcare network from the region acquired the hospital.
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L&M's bid includes assuming $22 million of Westerly Hospital's debt.
The bid will be used as a base for other competing bids. Other suitors have until July 30 to submit their bids, and a sale hearing is scheduled for August 13. Prior reports have said five to six hospitals have already submitted bids for the hospital.
Superior Court Judge Brian Stern reserved the right to make a final decision not on the highest bid, but what is in the best interests of the state, according to the report.
Westerly and L&M considered a strategic alliance in August 2011, but negotiations came to an abrupt end when Westerly voluntarily entered receivership and came under the control of a court-appointed special master.
The hospital's special master, Mark Russo, has previously said the best-case scenario is if an existing healthcare network from the region acquired the hospital.
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