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June 26, 2008

Update: Special master to oversee Landmark operations

PROVIDENCE -- Superior Court Judge Michael A. Silverstein approved a petition today from the Landmark Medical Center and appointed an attorney as temporary special master to oversee the financially troubled hospital's operations and consider a potential merger or sale.

Jonathan N. Savage, with the firm Shechtman, Halperin and Savage of Pawtucket, will assume control of the hospital's assets and day to day operations. He also will "seek and evaluate potential acquisitions, partnerships and other financial solutions," said Richard Charest, president of Landmark.

Charest said, "Although the hospital is in a negative net asset position, based upon current operations, Landmark has sufficient cash on hand to continue operations through the first quarter of 2009."

He said, "Landmark will continue to deliver high quality health care to the residents of northern Rhode Island."

Savage's appointment is temporary, and the court will reconvene in 21 days to decide if the special master shall be a permanent designation.

In statements late this afternoon, Governor Carcieri and Health Department Director David Gifford said they supported the appointment of a special master. Attorngey General Patrick C. Lynch said he appreciated the judge's "quick intercession to try to preserve Landmark as a community asset."

The chief executive officer of Landmark petitioned the court earlier today to have a special master to take charge of the financial affairs of the Woonsocket hospital.


-- With reports from Journal staff writer Paul Grimaldi and Journal archival reports

In the petition, Gary Gaube, chief executive officer and trustee of Landmark, cited the facility's providing of more than $8.5 million annually in uncompensated care to the uninsured and the underinsured.

In addition to threatening a facility that is the third busiest emergency room in the state, the brief filing asserts, at risk are about 1,100 jobs at Landmark.

The medical center made a plea in the late innings of the recently-ended General Assembly session for relief from a merger-approval procedure so it could more quickly merge with the financially stronger Memorial Hospital in Pawtucket -- before Landmark is forced to shut down. However, time ran out in that legislative proposal, The Journal reported.

Before the session ended, lawmakers asked questions of Landmark executives about how the finances turned so dire.

Posted by Mike McKinney  at 5:12 PM | Permalink

Comments

Obviously, I'm missing something here. Gary Gaube, chief executive officer and trustee of Landmark, petitioned the court earlier today to have a special master assume control of the hospital's assets and day to day operations. Isn't that what he is suppose to be doing as CEO. Doesn't make sense to me.

I don't get it | June 26, 2008 5:34 PM link

Long overdue. I certainly hope this "master" starts at the top - and also looks at the hospital as a necessary healthcare service, and not a business. Some services may be loss centers, but necessary for caring for people - it is about more than the bottom line. Exec. salaries, benefits. The er is not cost effective and probably loses money at every visit - but you can't close it. If this had happened a year ago, cardiac surgery would not have been closed. What a travesty of management ineptness for the people of RI - where is the accountability? Ultimately we know it is a national issue, CMS rates, BCBS reimbursement levels, etc....and this is only the tip of the iceberg - 3 other hospitals are right behind. What is the solution? Lifespan is the only hospital with an appropriate endowment to help - but you cannot have one giant healthcare system in the state. And the state has no helping money - the master has his hands tied and has very few resources with which to work. Landmrk is lean and mean and can't make it - what's the solution? Is there even one?

dan | June 27, 2008 3:36 AM link

Northern Rhode Island needs Landmark, both for the close proximity of care and for the 1000+ jobs. It's too bad the administrators didn't focus on the real needs of the community when they decided to jump into bed with Deaconess and start a very unnecessary cardiac surgery program. That program is likely what bled Landmark dry and now the people of Woonsocket are going to pay dearly for that mistake. I pray there is a way to save the hospital.

Debi | June 27, 2008 7:28 AM link

If you want Landmark to stay open, you need to support the Governor's attempts to rid the state of benefit-leeching illegal aliens who are showing up at the ER for free care for every runny nose and boo-boo.

Greg | June 27, 2008 9:49 AM link

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