WESTERLY – The $69 million purchase of Westerly Hospital by Lawrence + Memorial Hospital of New London, Conn., was finalized on May 31, 18 months after Westerly Hospital first went into receivership.
Under the terms of the sale, Lawrence + Memorial will assume $22 million in debt, pump in $6.5 million in working capital during the first two years, and invest $30 million in new technology and equipment. Westerly Hospital will keep its name; maternity services were moved to Lawrence + Memorial as of June 1.
The deal transferring ownership was completed with a brief ceremony when Bruce Cummings, president and CEO of Lawrence + Memorial, and Marc Russo, a Providence lawyer appointed special master in December 2011, signed deed documents.
By comparison, the proposed sale of Landmark Medical Center to Prime Healthcare Services of Ontario, Calif., remains stalled, with the state regulatory review suspended pending submission of information to the purchase application so it can be deemed complete, according to spokeswoman Amy Kempe of the R.I. Attorney General’s office.
“The process remains suspended as the transacting parties continue to provide the necessary information to deem the application complete,” Kempe said.
Landmark now enters its fifth year of receivership this month, having failed to complete deals with a number of other suitors.
Meanwhile, the proposed affiliation of Memorial Hospital in Pawtucket to become part of the Care New England hospital network is moving ahead. A public hearing on the deal is scheduled for June 11 at the Joseph Jenks Junior High School in Pawtucket from 4 to 6 p.m.
The $69 million purchase of Westerly Hospital by Lawrence + Memorial Hospital of New London,
was finalized on May 31,
18 months after Westerly Hospital first went into receivership.