New London, Conn.-based Lawrence + Memorial Hospital has finalized its acquisition of financially flailing The Westerly (R.I.) Hospital, ending a year and a half of hurdles the ownership deal faced, according to a report by The Day.
L+M agreed to purchase the hospital for $69 million, including covering the $1.5 million closing costs, assuming Westerly's $22 million in debt and pledging $6.5 million in working capital over two years and $30 million in other capital projects over five years. A new logo for the hospital will appear in June.
Westerly was placed into receivership in December 2011 after years of negative financial performance, according to the report. In April, before the deal was finalized, Westerly laid off 45 of its roughly 600 employees. The hospital closed its obstetrics department May 31, transferring those services to L+M.
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L+M agreed to purchase the hospital for $69 million, including covering the $1.5 million closing costs, assuming Westerly's $22 million in debt and pledging $6.5 million in working capital over two years and $30 million in other capital projects over five years. A new logo for the hospital will appear in June.
Westerly was placed into receivership in December 2011 after years of negative financial performance, according to the report. In April, before the deal was finalized, Westerly laid off 45 of its roughly 600 employees. The hospital closed its obstetrics department May 31, transferring those services to L+M.
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