Westerly Hospital has reached a settlement with the U.S. Department of Justice over agreements it made with doctors not to compete for business. Westerly officials haven’t admitted wrongdoing, but the hospital’s arrangement with doctors may have contributed to higher patient costs.
Rhode Island regulators have given their final approval for the sale of Westerly Hospital to the New London-based Lawrence & Memorial Hospital.
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.
Rhode Island authorities have until the end of April to make a decision about whether to allow the sale of Westerly Hospital to Connecticut-based Lawrence + Memorial Hospital, but on Wednesday members of the Westerly community will have the chance to comment on the proposed sale.
The Department of Health and the attorney general’s office have final say on the deal, but Attorney General Peter Kilmartin says public input helps to inform the decision.
Westerly Hospital is another step closer to being acquired by New London-based L&M Hospital.
Rhode Island’s department of health and the attorney general’s office say they’ve received a complete application from L&M. The state agencies now have 90 days to review it. If they accept L&M’s offer, Westerly could be the first hospital acquired under the state’s new Hospital Conversions Act.