Also known as Lake Shore Health Care Center
The company which operates Lake Shore Hospital in Irving, New York has filed for bankruptcy protection. The TLC Health Network filed for bankruptcy on Monday, December 15. Unless a buyer is found, Lake Shore will close in January 2014.
The hospital filed for Chapter 11 bankruptcy which allows a business to reorganize by giving them time to come up with a viable repayment plan to repay their creditors and attempt to improve the financial condition of the business.
Lake Shore Health Care Center is a general medical and surgical hospital with 220 beds. It is also accredited by the American Osteopathic Association.
Lake Shore patients will gradually be moved to another TLC operated facility, Brooks Memorial Hospital in Dunkirk, New York.
10’s of Thousands of Patients
Survey data for the latest year available shows that 10,708 patients visited the hospital’s emergency room. Lake Shore Hospital had a total of 21,455 admissions. Its physicians performed 365 inpatient and 2,782 outpatient surgeries. There were 61,495 outpatient visits. The hospital provides inpatient services for the elderly/disabled (skilled nursing care) and infection isolation rooms. The provided outpatient services are for breast cancer screening/mammograms, home health services and substance-abuse programs.
This is not the first time that Lake Shore has announced its intention to close down due to losses. In October TLC announced their intention to close at the end of January if a buyer is not found. They have lost more than $9 million so far in 2013, and have lost $16.7 million from operations from 2008 through 2012. The hospital’s filing estimates future revenues of $2 million per month and future expenses of $3.4 million per month, leaving an annual deficit of $16.8 million.
A Concern for the Lake Erie Region
TLC is a part of the Lake Erie Regional Health System of New York, also known as LERHSNY, formed in 2008. Another hospital operated by TLC was closed, Tri-County Memorial Hospital in Gowanda, NY. TLC currently operates Gowanda Urgent Care & Medical Center as well as outpatient facilities.
“This was a difficult decision that needed to be made, and we feel deeply for every community member and employee that this move will negatively impact,” said Christopher Lanski, LERHS board chairman.
“However, we strongly believe this was the only decision that would allow us to continue providing health services in other parts of our community through Brooks Memorial Hospital and our urgent and primary care facilities, and we pledge to make the transition as smooth as possible for everyone involved.”
Still a Chance to Stay Open
While awaiting the deadline, Lake Shore Hospital is continuing to negotiate with potential buyers. Anthony Borrello, a local businessman, placed a bid to buy the hospital soon after it announced its plans to close, however, as of yet TLC feels they have not received a purchase price that is fair. TLC is also looking for interim financing to help Lake Shore get back on its feet.
Approximately 460 employees of Lake Shore Health Care Center were notified, and their last day of employment will be as early as January 16th. The decision to close the facility leaves 60 long-term care patients in jeopardy.