A Rhode Island Superior Court judge has approved the sale of Westerly Hospital to Lawrence & Memorial Hospital of New London for $69 million, The Associated Press reports.
Judge Brian P. Stern approved the deal on Thursday. It’s a major milestone in the hospital’s efforts to exit receivership.
State and federal regulators must approve the sale.
The nonprofit Lawrence & Memorial says it will keep Westerly as an acute-care hospital for at least five years, keep all 700 employees on the payroll and continue all clinical services for at least two years.
The hospital will spend $30 million on capital improvements and $6.5 million on a turnaround plan.
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Westerly Hospital lost $5.7 million in 2011 and went into receivership in December.
