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    Saturday, May 04, 2024

    L&M still interested in Westerly Hospital

    New London - Lawrence & Memorial Hospital has submitted a "preliminary nonbinding proposal" to acquire some or all of the assets of the financially troubled Westerly Hospital.

    "We believe this symbolizes the significance of our interest," Mike O'Farrell, L&M spokesman, said Thursday.

    He declined to elaborate on the scope or terms of the offer, and added that he could not say when a formal proposal would be submitted.

    L&M and The Westerly Hospital undertook discussions last year toward a possible merger, but that ended abruptly when the Rhode Island hospital voluntarily entered receivership and came under the control of a court-appointed special master.

    Westerly Hospital ended fiscal 2011 with a $5.7 million operating deficit, the latest of several years of red ink, and with insufficient cash to continue operations without legal protection from creditors.

    Attorney Mark Russo, the court-appointed special master, said in an email message Thursday that six "hospital systems" have accessed the electronic data room set up to provide information to would-be suitors about Westerly Hospital's finances, patient population and other information. Three others are expected to access the room in the next few days. He declined to name any.

    "We have had an outstanding response to our Confidential Offering Memorandum," Russo said.

    O'Farrell confirmed that L&M representatives were among those who accessed the data. In February, L&M announced that it would hire a financial consultant to determine whether it should purchase all or part of Westerly Hospital.

    "The process now is that we have to wait to hear back from the special master," O'Farrell said. "We have enough information to do what we did. When the conversation started last year between the two hospitals, that was clearly an effort to find a way for the two groups to come together. We have a continued interest."

    In his most recent report to the court, Russo said he had engaged a consultant to attract proposals for the "acquisition, strategic partnership and/or repositioning of The Westerly Hospital and related entities."

    He said he also had met with physicians to restructure agreements and is addressing staffing needs at the hospital, including the need for emergency doctors.

    Last month, the year-old North Stonington Health Center, which is owned by The Westerly Hospital, significantly cut services.

    j.benson@theday.com

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