State fines health care system $1M over hospital conversion
PROVIDENCE, R.I. (AP) — Rhode Island has fined a health care system $1 million for converting two hospitals to a nonprofit status without state approval.
The Department of Health said Monday it signed a consent agreement with California-based Prime Healthcare.
The department says the for-profit system transferred the hospitals to its nonprofit foundation Dec. 31, 2016, the same day it applied to the state for permission.
Prime Healthcare owns Landmark Medical Center in Woonsocket and Rehabilitation Hospital of Rhode Island in North Smithfield.
The application for nonprofit status is pending.
Prime Healthcare says it wants to move the application forward and remains committed to the community.
The health department says the fine is the largest levied in at least 30 years, and it needs accurate information about health care systems to ensure accountability and the stability of facilities.