Release Date: 04/19/2017
Care New England Health System of Providence, RI (CNE), announced today it has selected Prime Healthcare Foundation to pursue an acquisition of Memorial Hospital in Pawtucket, RI. The CNE Board has voted unanimously to sign a Letter of Intent (LOI) with the non-profit Prime Healthcare Foundation, a 501(c)3 public charity committed to serving all members of the community.
Prime Healthcare Foundation’s 14 hospitals are affiliated with Prime Healthcare, an award-winning health system based in Ontario, California with 44 hospitals in 14 states.
With the LOI in place, both parties will now negotiate with the purpose of developing a definitive agreement and moving forward with needed approvals, including state and federal regulatory processes. The proposed transaction is expected to culminate in Prime Healthcare Foundation assuming control of Memorial Hospital, taking over operations of the hospital, and providing significant investment in Memorial post-closing.
This is one of two important announcements being made today by CNE relative to both Memorial Hospital and a broader system partnership. Collectively, they represent a strategic and definitive step forward ensuring continued access to high-quality care close to home, opportunity for increased economic development, and ongoing commitments to the critical importance of academic training locally and throughout the region.
CNE Board Chair Charles R. Reppucci said, “The path to today’s selection of Prime Healthcare Foundation by CNE has long been about ensuring that the important needs of the community and the employees continue to be met. Not only does this proposal ensure the continuity of acute care services for this community, but it also maintains a local hospital board, commitment to existing services, the medical residency program, and continued opportunity for the staff of Memorial Hospital.” “It is certainly no secret that we have had significant financial challenges here,” said CNE President and CEO Dennis Keefe. “But at the same time it has been clear there is an important obligation to maintain the care and services offered to those in and around Pawtucket. The only way for this to continue is through the partnership we announce today with Prime Healthcare Foundation. It represents an extremely positive outcome with tremendous opportunity ahead.”
Prime Healthcare is an award-winning, national, for-profit hospital system with 44 acute-care hospitals providing nearly 43,500 jobs in 14 states. The potential acquisition of Memorial Hospital will complement the Prime Healthcare’s existing presence in Rhode Island with Landmark Medical Center and The Rehabilitation Hospital of Rhode Island, located in Woonsocket and North Smithfield.
Prime Healthcare and its hospitals have been recognized as among the “100 Top Hospitals” in the nation 38 times and among the “15 Top Health Systems” three times, and Prime is the only "10 Top Health System" west of the Mississippi.
“Prime Healthcare’s motto is saving hospitals, saving jobs and saving lives, and we are confident Memorial Hospital will grow stronger under our management,” said Prem Reddy, MD., chairman, president and CEO of Prime Healthcare. “We look forward to working with the Memorial Hospital employees, nurses and physicians, and ensuring that the community and patients continue receiving exceptional care and service.”
Memorial Hospital of Rhode Island is a 294-bed community teaching hospital that has served northern Rhode Island and southeastern Massachusetts since 1901. A teaching affiliate of The Warren Alpert Medical School of Brown University, Memorial is the main site for the medical school’s residency programs.
In 2013, Memorial joined Care New England Health System to expand the scope of services available to its patients and provide a strong primary care focus within the system.
SOLIC Capital Advisors, LLC serves as financial advisor to Care New England, and McDermott Will & Emery provides external legal counsel.
Care New England and Partners HealthCare Agree to Explore Affiliation
Care New England Health System of Providence, Rhode Island (CNE), announced today it has elected to join Partners HealthCare of Massachusetts, signing a Letter of Intent (LOI) and agreeing to negotiate exclusively with Partners.
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