Landmark Medical Center fined $1 million by DOH for unauthorized change

WOONSOCKET – The Rhode Island Department of Health has levied what may be the largest fine in its history against the company that owns Landmark Medical Center for converting the hospital to not-for-profit, tax exempt status in 2016 without authorization, and then providing false information to the state regarding the change, according to a consent agreement between the two parties released this week.

Prime will pay $1 million for transferring the hospital’s assets to its charitable, nonprofit arm, the Prime Foundation, without the needed regulatory approvals. The DOH said the change effectively allowed the company to avoid millions in property taxes.

The California-based health care chain submitted an application to DOH in December of 2016 for a change to nonprofit status for both Landmark and its sister facility, the Rehabilitation Hospital of Rhode Island in North Smithfield. The hospitals came out of receivership in 2013 to become the first for-profit facilities in the state after Prime purchased them for $62 million.

According to the agreement released Monday, Prime had already transferred the assets before submitting the application, and knowingly gave false information to the DOH, stating that the transfer would only be done following the approval process. The application with DOH is still pending, and scheduled to go before the department’s Health Services Council when it meets next Tuesday.

Read more: http://www.valleybreeze.com/2017-11-01/woonsocket-north-smithfield/landmark-fined-1-million-doh-unauthorized-change#.WgPYB3ZrzRY