Long Beach (N.Y.) Medical Center has filed for Chapter 11 bankruptcy and will sell all assets to South Nassau Communities Hospital in Oceanside, N.Y.
The 162-bed LBMC has been closed since it sustained heavy flooding damage from Hurricane Sandy in October 2012. In a joint statement, LBMC and South Nassau officials said although LBMC worked with the Federal Emergency Management Agency and conducted repairs, the massive storm put LBMC in a position where it could not recover financially.
The two organizations signed an asset purchase agreement in which South Nassau will purchase LBMC's assets for $21 million, according to a Bloomberg report.
Officials said LBMC will not reopen as a full-service acute-care hospital. Instead, South Nassau will establish an urgent care center in Long Beach. The New York State Department of Health awarded $6.6 million to South Nassau last October to help pay for the project.
"[South Nassau] 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," the statement read.
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