L&M hopes to invest, turn profit at Westerly Hospital
PROVIDENCE, RI – Connecticut's Lawrence and Memorial Hospital has cleared another hurdle in its acquisition of Westerly Hospital. The New London-based L&M has reached a deal on hospital payments from Blue Cross Blue Shield of Rhode Island. And last week a Rhode Island Superior Court judge approved L&M's $69 million dollar bid. L&M spokesman Michael O'Farrell says the plan now is to address Westerly's pressing financial problems.
"What happens immediately? We continue along with what's been happening there with some influx of L&M management best practices that we discovered along the way to start to turn the tide a little bit," says O'Farrell, "because we believe we can make that hospital turn a 3% profit margin in three years."
O'Farrell says L&M has agreed to invest $30 million dollars in upgrading Westerly Hospital's technology and facilities. It's also agreed to maintain the clinical services Westerly currently provides for two years and to keep it a community-based non-profit for five. The deal still needs regulatory approval but is expected to wrap up this January.
Do you have insight or expertise on this topic? Please email us, we'd like to hear from you. email@example.com.