Prime Healthcare Services of California announced today it is the new prospective buyer for the finanically-strapped Landmark Medical Center.
The company has agreed to invest more than $60 million in Landmark during the next 5 years and provide an immediate emergency credit line of $3 million.
With 1,300 employees, Landmark is the second-largest economic driver in northern Rhode Island, and the only hospital serving Woonsocket and northern RI communities. It has been in a years-long search for a potential buyer that could restore it to fiscal health, preserving the hospital as a local healthcare resource.
Prime Healthcare Services, established in 2001, operates 19 acute care hospitals in California, Reno, Nevada, Pennsylvania and Texas.
According to the release, the company was nationally recognized in 2012 as one of the “15 Top Health Systems in the Nation” by Thomson Reuters, based on quality of healthcare and patient satisfaction. It was also recognized as a top health system in 2009. Five Prime Healthcare hospitals were also ranked among the “100 Top Hospitals in the Nation” in 2012.
The Providence Journal reports the company has been the subject of controversy, providing a link to the Center for Investigative Reporting web page, California Watch, which lists a series of in-depth articles on Prime Healthcare.
“Our experienced management team and our physician-driven and patient-focused system, which adheres to proven clinical protocols, will stabilize the hospital financially and make it one of the top providers of healthcare in the state and country,” said Prem Reddy, MD, FACC, FCCP, Chairman, President and CEO of Prime Healthcare Services in a release on the intended purchase.
“The survival of Landmark Medical Center continues to be a significant priority for our city, its residents, and the many employees of Landmark that make Woonsocket their home,” said Woonsocket Mayor Leo Fontaine. “Though I am disappointed in the recent turn of events in that it now prolongs what has already been a difficult process, I am happy that Landmark has taken the steps it has to position itself for a successful future as a full service hospital in our community. I am also encouraged by the entrance of Prime Healthcare into the effort to save our hospital. They have a demonstrated commitment to quality healthcare and have a proven track record of turning hospitals such as Landmark around successfully. We will continue to assist in this process to ensure the success of our community hospital and its future in our city.”
The company has also vowed to continue operating Landmark Medical Center as an acute care hospital serving the needs of the community, including the emergency department and to continue offering charity care at the existing levels, or more.