State Officials Sign Off on Westerly Hospital Sale

Apr 18, 2013

Rhode Island regulators have given their final approval for the sale of Westerly Hospital to the New London-based Lawrence & Memorial Hospital.

Credit Kristin Gourlay / RIPR

The head of Rhode Island’s Department of Health and the state's Attorney General have signed off on the deal to sell Westerly to L&M. Now, the deal is expected to close June first. Westerly Hospital has been in receivership since 2011 and under the leadership of a special master. L&M spokesman Michael O’Farrell says the special master will stay on through the closing date.

“Right now we are working hard as we have been with the special master and his team to make sure that come June 1st there’s a seamless transition," said O'Farrell.

Part of that transition includes L&M’s commitment to keep Westerly’s union and non-union clinical, trade and service employees. That includes nurses and others who care directly for patients. And it includes a promise to maintain Westerly’s current clinical services for the next two years, although obstetrics services will be shuttered this summer as previously planned. The deal is valued at nearly $70 million dollars. It includes $30 million in facility upgrades over the next five years and taking on Westerly Hospital’s more than $20 million in debt.