Peninsula, union has possible benefit settlement

A tentative settlement has been reached between Peninsula Hospital Center and the 1199 Benefit Fund that would cut the Far Rockaway hospital’s obligation from $20 million down to $10 million payable over a three-year period.

Due to Peninsula Hospital’s financial problems of the past few years, it was delinquent on its payments to the fund that provides healthcare, training, childcare and pensions to 440,000 working and retired healthcare industry workers, who are members of 1199SEIU United Healthcare Workers East, including more than 600 employees at Peninsula.

Currently, the hospital, which is $60 million in debt, is progressing through bankruptcy proceedings. Todd Miller has been Peninsula’s chief executive officer since Brooklyn-based Revival Home Health Care acquired the hospital in September. “We’re thrilled and it’s an important step emerging from bankruptcy,” Miller said.

However, union officials emphasized that the agreement is very preliminary and due to the complexity of this bankruptcy proceeding many more details need to be pinned down before the agreement can become official.

But 1199 spokeswoman Leah Gonzalez said that the union supports what Peninsula officials are trying to do regarding saving the hospital. “The union and the hospital have continually worked together to save vital healthcare services in the Rockaway community and keep Peninsula’s doors open,” Gonzalez said.

Last July, Medisys Health System, the Queens-based health network that ran Peninsula, announced that due to the overriding debt they were closing the hospital. The facility began to shutdown and patients had been sent to over hospitals and the emergency room was on the brink of being closed.

But, after several weeks of negotiations, Revival stepped in and kept the hospital functioning. However, obstacles remain, as an examiner was appointed to review the relationship between Peninsula and Revival. Miller was previously an employee of Revival before he took over the executive reigns at the hospital. Also the Jan. 20 hearing regarding the motion about the planned $3 million loan from Revival to Peninsula was moved to Feb. 2.