Health Department OKs Landmark Sale To Steward

Decision lists 16 conditions, purchase waits on AG's approval.


The RI Department of Health has approved the sale of Landmark Medical Center to Steward Health Care, listing 16 conditions.

The Providence Business News reports the center will be renamed Blackstone Medical Center, incorporated in Delaware.

The Department of Health approved both the Change In Effective Control application, which was recommended for approval earlier this month by the Health Services Council, and the Hospital Conversions application.

"In evaluating these applications, HEALTH was charged with considering the totality of the evidence, as well as the needs of the people of Woonsocket,” said Dr. Michael Fine, director of the Department of Health, a release announcing the decision. 

The sale still waits on the approval of Attorney General Peter Kilmartin's office.

Landmark has been in a special form of receivership, Special Mastership, since 2008, according to a history of the issue included in the Department of Health decision. Special Mastership differs from general receivership in that the mission of the person appointed to run the business is to safeguard the public interest rather than that of creditors. Superior Court has appointed attorney Jonathan Savage as Landmark's Special Master.

Without the sale, Landmark, the 31st largest employer in the state, is in risk of closing, said Richard R. Charest, president of the facility during an April 9 public hearing on the sale. With Steward, Charest said, the center will benefit from investments in technology and equipment. Already, in anticipation of the sale, Steward has kept the center afloat by extending a $5 million line of credit. 

The Department of Health's conditions were:

1) Steward and Blackstone Medical Center will collaborate and coordinate patient care with primary care and maternity providers in its service area, including physicians and community health centers

2) Steward and BMC will report data annually on equality of treatment, number of primary care physicians per 10,000 population and ration of primary care doctors to specialty doctors in BMC's service area.

3) Steward/BMC will participate in currentcare and endeavor to enroll all patients presenting for care in currentcare and participate in any community health assessments conducted by the Department.

4) Steward/BMC shall not unreasonably withhold admitting privileges so as to deprive traditionally underserved populations appropriate access to care.

5) Steward/BMC shall not use ownership interests as incentives for hospital employees or physicians to refer patients to the hospital.

6) Services and facilities be provided in conformance with rules and regulations for licensing hospitals.

7) Services at the facilities be provided to all patients without discrimination, including payment source or ability to pay; and that the facilities accept Medicare and Medicaid patients.

8) The facilities shall provide charity care in compliance with RI law.

9) That the HCA applications  be implemented as approved.

10) That data, including but not limited to finances, utilization and demographic patient information be furnished to the state upon request.

11) That subject to applicable review and approval of the Department of Health, Steward shall expend $30 million plus an amount equal to 2.5 percent of annual net patient revenue on capital expenditures at the hospitals in the first five years after the closing.

12) That Steward expend $4.5 million for physician recruiting in the first five years after the closing.

13) That Steward shall not sell either facility to any person or legal entity unaffiliated with Steward for 5 years after the closing.

14) That Steward shall offer at-will employment to LMC's and RHRI's non-union employees, except for employees identified by Steward pursuant to the Asset Purchase Agreement.

15) That Steward shall honor naming commitments to past donors.

16) That composition of each facility's board of directors be:

  • Between 7-11 members (including three who serve by virtue of their positions at Steward)
  • Two-three physicians on the hospital medical staff or with ties to the service area.
  • Community and healthcare leaders and/or prominent local business executives with an interest in revitalizing the hospitals and with ties to the service area.
Mike Kind May 23, 2012 at 07:35 PM
Great news. Not only do we need a hospital, but also the taxes this Company will pay. I'm really interested to see the details regarding the valuation of this property and the incentives which will be offered.


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