MediSys, a majority sponsor that controls Far Rockaway, N.Y.-based Peninsula Hospital's operations, notified the hospital board of directors that it will be "withdrawing as the sole corporate member" effective Aug. 22, according to a New York Daily News report.
MediSys announced its withdrawal as the hospital's board tries to convince the state it can keep the debt-ridden facility afloat by Friday. MediSys also has the ability to veto any board decision until its withdrawal takes effect next week, including a bankruptcy filing. "Even if we make a decision, they can overrule us," Board Member Louis Caucig said in the report. "We're dog-paddling to keep our head above water, and they're pushing it down."
In addition to the reported $60 million in debt that any investor would have to pay, MediSys also demanded the hospital to pay all amounts due to them, the report said. While MediSys controls Peninsula's finances, MediSys officials said the hospital still maintains its own budget.
Read the New York Daily News report on Peninsula Hospital and MediSys.
A previous version of this article said that MediSys was the majority owner of Peninsula Hospital. MediSys was the sole corporate sponsor and had no ownership. We regret this error.
Employees Want Investigation Into Cash-Strapped Peninsula Hospital in New York
New York's Peninsula Hospital in Danger of Closing
MediSys announced its withdrawal as the hospital's board tries to convince the state it can keep the debt-ridden facility afloat by Friday. MediSys also has the ability to veto any board decision until its withdrawal takes effect next week, including a bankruptcy filing. "Even if we make a decision, they can overrule us," Board Member Louis Caucig said in the report. "We're dog-paddling to keep our head above water, and they're pushing it down."
In addition to the reported $60 million in debt that any investor would have to pay, MediSys also demanded the hospital to pay all amounts due to them, the report said. While MediSys controls Peninsula's finances, MediSys officials said the hospital still maintains its own budget.
Read the New York Daily News report on Peninsula Hospital and MediSys.
A previous version of this article said that MediSys was the majority owner of Peninsula Hospital. MediSys was the sole corporate sponsor and had no ownership. We regret this error.
Related Articles on Peninsula Hospital:
New York Senator Launches Investigation Into Peninsula Hospital's BankruptcyEmployees Want Investigation Into Cash-Strapped Peninsula Hospital in New York
New York's Peninsula Hospital in Danger of Closing