After several months of proposals and reviews, the Rhode Island Department of Health has deemed Lawrence + Memorial Hospital's application to acquire The Westerly (R.I.) Hospital is ready for review.
L+M's initial regulatory filings were made Nov. 2, 2012. Under Rhode Island Law, both the Department of Health and Attorney General's office must approve changes in hospital ownership.
Bruce Cummings, president and CEO of the New London, Conn.-based L+M Hospital, said in a news release this was "a significant and welcome step," and the hospital will continue to work with state regulators to close the transaction quickly. The merger deal is expected to close within the next 90 days.
The Westerly Hospital had been looking extensively for an owner due to its struggling financial condition. It filed for receivership in December 2011, and in fall 2012, Standard & Poor's downgraded Westerly's credit rating from "C" to "D" — the lowest possible rating.
In August 2012, Rhode Island Superior Court Associate Justice Brian Stern, who presided over Westerly's receivership, approved L+M's bid to buy Westerly for $69 million.
Correction: An earlier version of this article incorrectly stated the Rhode Island Department of Health has approved the merger between L+M and Westerly. As of Feb. 21, this is not the case, as the DOH only deemed the application was complete for review. We regret this error.
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