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Mostly Cloudy LBMC files for bankruptcy
Looks to sell assets for $21 million to SNCH
The Long Beach Medical Center filed for bankruptcy on Wednesday, setting the stage for a potential takeover of the facility by South Nassau Communities Hospital. The filing could lead to the opening of a 24-hour emergency department operated by South Nassau.
LBMC’s board of trustees agreed last week to sell the hospital’s assets to SNCH for $21 million, according to papers filed under section 363 and 365 of U.S. Bankruptcy Code. On Wednesday, the facility filed for Chapter 11 protection in U.S. Bankruptcy Court in Central Islip.
“Long Beach Medical Center will continue to operate until the final court order,” said one hospital official who asked not to be named. “I would estimate that if we’re lucky, the judge will vote to move with the asset sale within 60 to 90 days, but in the meantime the court will probably look for other bidders. They want to get the most amount of money.”
Both hospitals issued a joint statement on Wednesday, saying that LBMC and the Komanoff Center for Geriatric and Rehabilitative Medicine each filed for chapter 11.
“The filing was a logical extension of the circumstances stemming from the destruction to the Medical Center caused by Superstorm Sandy,” hospital officials said. “Although the Medical Center conducted repairs with the assistance of FEMA to reopen the hospital, it was determined that Long Beach Medical Center should not reopen as an acute care hospital and instead should partner with South Nassau Communities Hospital, which would acquire the medical center assets and restore medical services in Long Beach consistent with the needs of the community. SNCH will work on the redevelopment of the LBMC campus so that the residents of Long Beach and surrounding communities have access to high quality healthcare services.”
Some LBMC employees told the Herald that the hospital issued paychecks on Tuesday, and told employees that do not have direct deposit to cash their checks that day. “Apparently South Nassau takes over payroll for nursing-home staff tomorrow,” one employee said on Tuesday. “That’s what the staff was told.”
