R.I. hospital seeks $20 million boost from state

The financially struggling Landmark Medical Center, Woonsocket, R.I., is asking the state for $20 million over four years to help complete its proposed merger with Boston-based Caritas Christi Health Care.

Under bills before the state House and Senate, the money would be raised with a one-quarter percentage point increase in the tax on health insurance premiums. The tax would yield an estimated $5 million a year from 2011 to 2014.

Jonathan Savage, the court-appointed special master overseeing hospital, tells the Providence Journal that the $20 million would cover half the cost of necessary capital improvements.

He says the Caritas deal is "absolutely" contingent on the money. He says without the merger, Landmark is likely to close.

Hospital officials and unions support the legislation. Health insurers are opposed.