Ontario, Calif.-based Prime Healthcare Foundation signed a letter of intent to acquire Pawtucket, R.I.-based Memorial Hospital from Providence, R.I.-based Care New England Health System.
Under the acquisition agreement, the nonprofit will own and operate Memorial Hospital. Officials said the organizations will work to sign a definitive agreement to formalize the acquisition during the next few months.
Prime Healthcare Foundation owns and operates 14 hospitals across the nation. The foundation is affiliated with Ontario-based Prime Healthcare.
"It is certainly no secret that we have had significant financial challenges here," said Care New England President and CEO Dennis Keefe. "But at the same time it has been clear there is an important obligation to maintain the care and services offered to those in and around Pawtucket. The only way for this to continue is through the partnership we announce today with Prime Healthcare Foundation."
"Prime Healthcare's motto is saving hospitals, saving jobs and saving lives and we are confident Memorial Hospital will grow stronger under our management," said Prem Reddy, MD, chairman, president and CEO of Prime Healthcare.