For three years Steward had been working on acquiring the hospitals and the day after they give up and after loaning the hospital, Prime Healthcare steps in. Prime has also agreed to pay back a good portion of the Steward loan. Landmark also had issues with a Blue Cross lawsuit that was still hanging out there.
Blue Cross Sues Financially Stressed Landmark Hospital in Rhode Island-Court To Determine New Owner in April
I don’t know how it will work in Rhode Island but the link below somewhat describes what happens when Prime moves in, layoffs and a lot of what is not profitable goes out the door. They do focus on their ER services though as normally Prime does not sign agreements with insurance carriers and charges their normal customary fees. BD
Steward Health Care System said Thursday that it’s terminating its agreement to acquire Landmark Medical Center, the Woonsocket, RI, hospital it had been seeking to buy for the past three years.
Boston-based Steward, which said it loaned Landmark about $7 million to pay off its debt, fund operations and maintain its payroll, said it was backing out of the asset purchase agreement because health care parties in Rhode Island and the special master who had run the bankrupt hospital had failed to meet conditions specified in the deal.