By Dennis Holt
Brooklyn Daily Eagle

COBBLE HILL -- Providing a background of grim financial numbers, the leadership of Long Island College Hospital announced today that it would completely close its obstetrical services and probably cut in half its bed capacity from 500 to 250.

These significant measures are being taken, said Stanley Brezenoff, CEO of Continuum Partners, to “make sure that there can be another 150 years of life in Long Island College Hospital added to its past.�

In closing obstetrics, Brezenoff noted that this service is a huge money drain for LICH. In 2007, this service accounted for about one third, or $11 million of LICH's losses. Also OB malpractice accounted for $8.8 million of the total $22 million in malpractice insurance costs. But all this accounted for only about 12 percent of its patient base.

Only days after announcing the appointment of Dominick Stanzione as interim president of LICH and “chief restructuring officer,� a press conference was held at LICH to announce these decisions and to suggest that others could be forthcoming.

Continuum has already held discussions with the New York Department of Health on steps it plans to make and will make a formal proposal on it soon. Discussions have also been held with the two main government entities holding most of the hospital’s debt.

One of the many “bottom lines� discussed was the reality that LICH continues to spend about $30 million a year more than it takes in. Last year, its revenues were about $300 million.

Brezenoff put it simply: “We have to cut losses and raise revenues so that we can pay off the debt which is about $170 million. Debt service is about $22 million per year.�

One of the ways to “raise revenues� is to sell off excess property. Specifically, two properties were mentioned -- the Polhemus building and 97 Amity St., both on opposite sides of Amity Street on the corner of Henry Street.

Other properties that might evolve into surplus space were not mentioned, and guesses were said to be premature.

The kind of financial numbers made public Wednesday were unusual, but were released to make understandable the financial problems of the hospital, which Brezenoff said “cannot continue indefinately.�

He noted, for example, that the 2008 budget factored in a debt of $8 million, but after the first six months, that number was running at a $16 million level. The announcement of its preliminary plans was prompted by these growing numbers and by the widespread speculation that Continuum might try to close the hospital.

Confidence was expressed repeatedly that getting the financial houses in order would lead to a "better Long Island College Hospital."

Brezenoff also repeatedly made clear that monies from all real estate transactions would go to retire the debt and all cost savings applied to LICH.

Brezenoff also made clear that Continuum has chosen the path of internal improvements, corrections, and restructuring over declaring bankruptcy, which other hospitals, such as Brooklyn Hospital, have followed.

In June, a group of doctors led by Dr. Arnold Licht, president of the LICH medical staff, held a press conference accusing Continuum of financial mismanagement. They said that their parent company was taking money out of LICH and concentrating on its Manhattan hospitals, such as Beth Israel and St. Luke’s-Roosevelt. They also called for a locally chosen, independent board separate from Continuum’s.

© Brooklyn Daily Eagle 2008
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