Prime scoops up Landmark after Steward backs out

Just days after a pending deal with Steward Health Care fell through, financially troubled Landmark Heath System in Woonsocket, R.I., has agreed to terms with California-based Prime Healthcare Services, according to the Woonsocket Call and the Providence Journal.

The Ontario, Calif.-based Prime, which has a controversial history over operations and billing in its home state, has focused on acquisitions outside of California in recent months. In addition to the pending Landmark deal, it also announced a deal to acquire Dallas (Texas) Medical Center this week.

Landmark, which includes a 214-bed acute care facility and a rehabilitation hospital, has been in receivership since 2008. Steward, which has been aggressive in acquiring properties in New England, reportedly backed out of the deal after state tax officials compelled Landmark to pay $6.1 million in licensing fees and penalties.

Prime said in a statement it would invest $60 million into Landmark over the next three years and provide a $3 million emergency line of credit.

"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," Prime CEO Prem Reddy said in the statement.

The deal is pending a state court judge's approval, the Call reported. If approved, it would be Prime's 19th hospital overall, according to the Journal.

For more information:
- read the Woonsocket Call article
- see the Providence Journal article
- here's the Prime Healthcare statement on acquiring Dallas Medical Center

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