Rhode Island Superior Court Judge Michael Silverstein has granted final approval to Ontario, Calif.-based Prime Healthcare Services' purchase of Landmark Medical Center in Woonsocket, R.I., according to a Providence Journal report.
Judge Silverstein said the sale is in the best interests of the residents of northern
The for-profit Prime, which operates 23 hospitals, received court approval last year to buy the bankrupt, nonprofit Landmark, which has been in receivership for the past five years. However, state officials suspended the transaction from proceeding this past April, saying Prime's application to complete the deal was incomplete.
Under the asset purchase agreement, Prime will invest $30 million in technology and capital improvements over the first five years. Prime will also provide at least $4.5 million for physician recruitment, $15 million for routine replacements at Landmark and pay off millions in Landmark debt. The company will also operate Landmark as an acute-care hospital for at least three years.
Blue Cross Blue Shield of Rhode Island had filed a limited objection related to $3 million it says it's owed as a creditor, although the insurer supports the sale. Judge Silverstein has approved a compromise between Blue Cross and Prime, according to the report.
The Rhode Island Department of Health approved the sale late last month.
More Articles on Landmark Medical Center:
Rhode Island Judge Expected to Rule on Landmark Medical Center Sale This Month
Rhode Island Citizens Push for Landmark Medical Center Sale
Rhode Island Approves Prime's Acquisition of Landmark Medical Center