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Landmark Says No Thanks To NJ Hospital Group's Purchase Offer

Hospital spokesman says they're sticking with Prime Healthcare's deal.

 

Landmark Medical Center announced yesterday a new suitor, LandmarkHospital HoldCo, LLC, had made an offer to buy the imperiled hospital, but Special Master Jonathan Savage is sticking with Prime Healthcare Services.

“The Special Master is in receipt of an unsolicited offer to purchase Landmark Medical Center from LandmarkHospital HoldCo, LLC. The court has already approved the Special Master’s motion to enter into an Asset Purchase Agreement and exclusive discussions with Prime Healthcare Services-Landmark, LLC," the hospital wrote in a release.

The Providence Business News reports the new bidder is the owner of Christ Hospital, Hoboken University Medical Center, and Bayonne Medical Center in New Jersey. They also report the company has offered $4 million more than Prime has. 

Landmark's release says LandmarkHospital HoldCo, LLC wasn't qualified during the 2011 bidding process because they failed to file the appropriate information with Savage and the courts.

"Although the Special Master has a fiduciary responsibility to review the offer and report this matter to the court, no motions or pleadings are being contemplated. The Special Master is more than satisfied with Prime’s offer and the pace of discussions related to the acquisition process,” said Bill Fischer, spokesperson for Landmark Medical Center.

Prime Healthcare of California announced Sept. 28 it was the new prospective buyer for the financially-strapped Landmark Medical Center after Steward Healthcare Services backed out of a deal to purchase it. Landmark staff, local and state officials and a majority of the public had pinned their hopes for the hospital's survival to the Steward deal for more than a year while it battled Blue Cross Blue Shield in Court over reimbursement rates and missed numerous procedural deadlines set by Attorney General Peter Kilmartin. 

Prime Healthcare 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.

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