Projo Biz Blog

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.

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.

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

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