Brooklyn Health Partners Development Group has filed a lawsuit against the State University of New York concerning the operation of Long Island College Hospital in Brooklyn, N.Y., according to a New York Daily News report.
Last month, BHP won the bid to operate the financially troubled hospital, which is currently owned by SUNY. In the lawsuit, BHP alleges SUNY threatened to end negotiations after BHP proposed seeking designation as a temporary operator for the hospital after SUNY transfers control on May 22, according to the report. SUNY says it was acting in good faith, according to the report.
Under BHP's proposal for operating the hospital, the group will pay $250 million for the LICH campus. BHP will maintain LICH as a full-service, acute-care hospital by building a new hospital with 300 to 400 beds. In addition, the group will support a "bridge facility" with at least 150 beds to provide emergency care, surgical care and other services until the new hospital is finished. BHP will start construction on the new facility no later than two to three years after the deal closes. Quorum Health Resources, a hospital management company, will run the hospital.
In March, LICH received nine partnership offers from various hospitals, health systems and developers. BHP's proposal was one of four that would've kept LICH as a full-service hospital. The hospital has experienced significant financial pressures, according to an audit released last year by New York Comptroller Thomas DiNapoli. According to the January 2013 audit, the hospital experienced losses of $13 million per month and faced immediate insolvency.
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