Westerly Hospital OK to receive charitable gifts

January 15, 2012

The special master guiding the receivership of Westerly Hospital says its charitable donations won’t be in jeopardy of being snapped up by creditors.

A Rhode Island judge has issued an order allowing the special master and the hospital’s fundraising foundation to set up a segregated account for donations made during the receivership.

The Westerly Sun reports ( http://bit.ly/zv2eF3) that the action ensures financial gifts can only be used according to the donor’s wishes, not for day-to-day expenses.

The hospital entered receivership earlier in December after ending fiscal 2011 with a $5.7 million operating deficit and insufficient cash to continue without legal protection from creditors.

Hospital officials have said they are optimistic about its future and say seeking the receivership was the most prudent decision under the circumstances.

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