$6.6m State Grant and Departure May Save Lake Shore Hospital
In a two-pronged effort to save Lake Shore Health Care Center from bankruptcy, officials from TLC Health Network have appeared in court after being released from their financially ailing parent company, Lake Erie Regional Health System of New York (LERHSNY.)
The disengagement from LERHSNY comes on the heels of $6.6 million state grant issued to TLC Health System in order to keep Lake Shore Hospital open throughout the year. The grant was issued in August, 2014 and is part of the state’s Interim Access Assurance Fund, a segment of an $8 billion Medicaid redesign program to help hospitals in distress while they develop new systems to deliver services.
TLC Seeks More Control Over Their Future
The New York State Health Department’s Public Health and Health Planning Council approved TLC’s departure from LERHSNY and its remaining entity, Brooks Memorial Hospital. The separation is expected to allow TLC more control over its future. In addition to its 35-bed hospital, TLC’s Lake Shore Health Care Center includes a 120-bed nursing home, certified home health agency and long term home health care program.
TLC Health filed for bankruptcy protection in December, 2013 and has courted new investors and potential buyers over the course of the year; however, an auction was recently called off after failing to attract enough qualified bids to purchase the hospital.
According to Business First, TLC Health’s Division Director for Business Development Scott Butler said that the organization would present an alternative plan to the court following the award of their $6.6 million interim access grant through the state’s Delivery System Reform Incentive Payment (DSRIP) program.
DSRIP Grant Will Keep Hospital Open Through March, 2015
The grant was approved by bankruptcy court officials for use on general operating expenses, but not for capital projects or debt. The first $2 million of the state IAAF grant was earmarked to cover operating expenses through August, 2014. Subsequent payments are scheduled to come on a monthly reimbursement basis through March, 2015. It is then that the second phase of the DSRIP process should be in place. Funding has also enabled TLC Health to advertise services in order to boost patient intake and remind the community that they are still open.
TLC Health has signed on to participate with two health provider teams vying for state dollars: a Southern Tier group that includes Olean General Hospital and WCA Hospital and 40 other partners; and Catholic Medical Partners, which is partnering with Catholic Health hospitals and dozens of other providers.