Interfaith Medical Center in New York City's borough of Brooklyn is planning to file for Chapter 11 bankruptcy this week, according to a New York Times report.
The hospital has dipped in and out of financial distress for decades, according to the report, and is currently unable to afford malpractice insurance.
It seems as though New York Gov. Andrew M. Cuomo's administration will not bail Interfaith out. James Introne, New York's deputy secretary for health, recently said Interfaith's bankruptcy filing is "their decision, not ours," according to the report.
Hospital officials said although there is no choice but to file for bankruptcy, it would help the hospital's long-term viability of the state-guaranteed $20 million in debtor-in-possession financing. This would underwrite the hospital's operating costs during the reorganization.
Dormitory Authority of the State of New York, a public authority that holds $130 million of Interfaith's debt, refused to provide that financing unless Interfaith merged with Brooklyn Hospital, according to the report.
Interfaith officials said leaving Brooklyn Hospital in control without the state promising the financing needed to maintain Interfaith's operations is equivalent to a covert plan to close the hospital in about a year and a half, according to the report.
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The hospital has dipped in and out of financial distress for decades, according to the report, and is currently unable to afford malpractice insurance.
It seems as though New York Gov. Andrew M. Cuomo's administration will not bail Interfaith out. James Introne, New York's deputy secretary for health, recently said Interfaith's bankruptcy filing is "their decision, not ours," according to the report.
Hospital officials said although there is no choice but to file for bankruptcy, it would help the hospital's long-term viability of the state-guaranteed $20 million in debtor-in-possession financing. This would underwrite the hospital's operating costs during the reorganization.
Dormitory Authority of the State of New York, a public authority that holds $130 million of Interfaith's debt, refused to provide that financing unless Interfaith merged with Brooklyn Hospital, according to the report.
Interfaith officials said leaving Brooklyn Hospital in control without the state promising the financing needed to maintain Interfaith's operations is equivalent to a covert plan to close the hospital in about a year and a half, according to the report.
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