Rhode Island’s largest medical group is buying a hospital that has faced mounting scrutiny from the state over its management of care and finances.
The Providence Medical group, the nation’s largest healthcare provider, said on Wednesday that it was buying URI, which is owned by U.S. Hospital Group, for $1,945 million in cash.
The sale was first reported by Reuters.
It comes as U.R.I.’s board of trustees grapples with a $1 billion restructuring of the hospital that could leave it vulnerable to lawsuits over alleged misconduct and fraud.
U.H.G. was founded in 1872 and has become one of the nation ‘s most profitable hospitals, accounting for more than $30 billion in revenue in the past five years.
The hospital said in January it had a $100 million profit in the first half of 2017.
U.H., meanwhile, has been battling with an influx of patients in recent years and is grappling with the fallout from the hospital’s bankruptcy in 2019.
The deal will create the largest healthcare group in Rhode Island, with a combined 2,800 employees and more than 10,000 beds.
URI employs more than 5,000 people, according to the Rhode Island Department of Health.
The takeover of URI is expected to close in the second half of 2018, U.K. media outlet The Guardian reported on Wednesday.
Urie’s board, which includes members of the U.C.R.’s health care workforce, is expected not to approve the deal.
Urie is the third hospital to be purchased by UH.
Its previous owners included the New York-based Merck & Co., the American Cancer Society and the American Diabetes Association.
The Hartford-based Hartford-Southern Medical Center, which owns Urie, has also been sold.