Today, New Rochelle, N.Y.-based Sound Shore Health System filed for Chapter 11 bankruptcy, but Montefiore Medical Center, the four-hospital system based in the Bronx borough of New York City, announced it will purchase the assets of the troubled system.
The deal is still pending bankruptcy court and regulatory approval, but both parties expect the transaction to close by the end of this year. Under the asset purchase agreement, Montefiore will acquire all assets and assume some liabilities of Sound Shore, which has two hospitals — 252-bed Sound Shore Medical Center in New Rochelle, N.Y., and 196-bed Mount Vernon (N.Y.) Hospital.
Terms of the transaction were not disclosed. However, according to a Law360 report, Montefiore will pay roughly $54 million for Sound Shore's assets, a bargain compared to Sound Shore's listed assets of $159.6 million.
Sound Shore decided to sell its assets to Montefiore under bankruptcy "to ensure the continuity of operations, protect the value of its assets and provide ongoing access to patient care and jobs," according to a news release. Sound Shore President and CEO John Spicer and Montefiore President and CEO Steven Safyer, MD, both said the deal was necessary to keep healthcare alive in the area.
Earlier this month, Sound Shore ended merger talks with Valhalla, N.Y.-based Westchester Medical Center but did not disclose reasons why negotiations failed.
The deal is still pending bankruptcy court and regulatory approval, but both parties expect the transaction to close by the end of this year. Under the asset purchase agreement, Montefiore will acquire all assets and assume some liabilities of Sound Shore, which has two hospitals — 252-bed Sound Shore Medical Center in New Rochelle, N.Y., and 196-bed Mount Vernon (N.Y.) Hospital.
Terms of the transaction were not disclosed. However, according to a Law360 report, Montefiore will pay roughly $54 million for Sound Shore's assets, a bargain compared to Sound Shore's listed assets of $159.6 million.
Sound Shore decided to sell its assets to Montefiore under bankruptcy "to ensure the continuity of operations, protect the value of its assets and provide ongoing access to patient care and jobs," according to a news release. Sound Shore President and CEO John Spicer and Montefiore President and CEO Steven Safyer, MD, both said the deal was necessary to keep healthcare alive in the area.
Earlier this month, Sound Shore ended merger talks with Valhalla, N.Y.-based Westchester Medical Center but did not disclose reasons why negotiations failed.
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