Overview of the nine Long Island College Hospital (LICH) proposals
Public forum on Tuesday at St. Francis College in Brooklyn Heights
Long Island College Hospital (LICH) in Cobble Hill proved to be of interest to both hospital operators and developers, attracting nine responses to SUNY’s new Request for Proposals (RFP) that “meet the minimum mandatory requirements.”
Four of the responses call for operating LICH as a full-service hospital. A fifth proposal would build a 149,000 square foot “vanilla box” space and lease it at a low rate to a future hospital operator.
The other four proposals would incorporate walk-in urgent care centers, stand-alone ERs and other medical facilities, but not full-service hospitals.
Under the new RFP’s rules, bidders proposing a full-service hospital will receive more points than bidders offering only ambulatory care services and/or standalone ERs. Those affiliated with a medical school would also receive more points.
A public presentation of the proposals takes place on Tuesday, March 25th, from 6 to 8 p.m. at St. Francis College, Founder’s Hall Auditorium, 180 Remsen Street, Brooklyn Heights. Panels made up of representatives of SUNY and representatives chosen by the petitioners in the lawsuit will have until Wednesday, March 26 to evaluate the proposals.
Here are brief descriptions of each proposal. Note that the hospital proposals are dependent upon receiving an Article 28 operating license, which can take a year or more unless SUNY facilitates and expedites the process. (The full proposals are available for public review at www.suny.edu/hospitals/downstate/newrfp )
– Brooklyn Health Partners
Brooklyn Health Partners proposes to build a new 300-400 bed full-service hospital in the Fuller and Othmer Pavilions and medical offices in the Polhemus building and part of the Amity Pavilion. It would create a “medical district” in the surrounding sites with medical offices, residential and commercial development. Construction would begin 24 – 36 months after closing. The hospital would be operated by Quorum Health Resources. A “bridge facility” would open immediately, which would include a 100-bed hospital with ER, ambulatory care, ICU and more. The proposal includes 1,000 units residential development, 30 percent affordable. They will seek to rezone the non-core properties. The temporary facility would employ 300 staff; the completed project will employ 2,000-plus. After 20 – 30 years, title to medical properties would be transferred to the community. Purchase price: $250 million.
– Chinese Community Accountable Care Organization
Chinese Community Accountable Care Organization with Eastern Chinese American Physicians, Paladin Healthcare Capital and Stanton Road Capital proposes to partner with St. George’s University School of Medicine (a teaching hospital in Grenada) for a full-service teaching hospital starting with 150 beds, then adding 50 beds a year up to 250 beds, including ICU, labor and delivery units. A proton therapy center owned by Bioscience Capital is also under consideration. A transitional management team will operate LICH while a permanent team is assembled. The hospital will be located in the Othmer and Polak Pavilions and the Henry Street Building. A strong emphasis will be placed on lowering cost and concentrating on primary care and prevention. Full implementation is expected to take 19 – 24 months. Stanton Road Capital will be backing the project, which envisions a combination of medical, commercial, retail and residential development. Purchase price $210 million.
– Prime Healthcare Foundation
Prime Healthcare Foundation proposes a non-profit full-service hospital starting with 100 beds then growing to 200 or more. The hospital would open immediately in the existing core properties: the Fuller Pavilion, Othmer Pavilion, Henry Street Building and Polak Pavilion. They propose to immediately resume all comprehensive and emergency services, including primary and specialty care, reopen the 16 operating rooms, resume residency programs, and invest in new equipment and physical and information infrastructure. They would employ all LICH employees and independent medical staff and maintain charitable programs. They would eventually use the 16 non-core properties for “unknown/ real estate” purposes. Purchase price: $220 million.
– Trindade Value Partners
Trindade Value Partners proposes a new full-service hospital with 506 beds. This includes a 400-bed medical surgical hospital and a 106-bed women’s hospital. The proposal also includes a comprehensive cancer center, a new ambulatory care center and medical office space. They will integrate hospital care with community-based care. A bridge/transition facility would include a 60- to 80-bed hospital with an emergency department, ICU, surgical and other services to be located in the Polak Pavilion for two years, then into the newly-constructed women’s hospital for a three-year period. A third phase would move these and additional services into the newly constructed medical-surgical hospital. Construction will take five phases over a nine-year period and will involve rezoning for residential development that will include 25 percent affordable housing. The plans include a new park on Henry Street. IDEEN Pharmaceuticals of Brazil is capitalizing the transaction. Purchase price: $210 million.
Intermediate Hospital Proposal:
– The Chetrit Group
The Chetrit Group would build a “vanilla box” hospital space but would leave it to the state government and the community to find an operator. They envision 100 total beds, a full-service 15-bay ER and a 12-bed ICU set in the Polak Pavilion. The 66 hospital beds would be intended for long-term acute care patients needing services in between those delivered at a full-service hospital and those provided by a nursing home/ rehab center. Chetrit would lease the health space at a below-market rate of $20 per sq. ft. to the eventual service provider. The proposal includes residential development with 30 percent affordable housing. They will seek rezoning. Purchase price: Either $251 million outright, or $226 million plus the deed of the Polak Pavilion to the eventual health care provider for $1.
– The Brooklyn Hospital Center
The Brooklyn Hospital Center (TBHC) would partner with Mount Sinai Medical Center for outpatient services, physician offices and a freestanding ER with 15 bays and up to 10 observational beds at the LICH site. They also propose two urgent care centers, locations to be decided, and two new walk-in facilities in Red Hook and Gowanus. Urgent care centers would be operational within 12 months. TBHC plans to invest $75 million towards community based healthcare, location not specified. Centers would employ 225 staff. LICH campus would be sold to Related companies, outpatient/ ER site would be leased to TBHC. Related plans mixed development. Purchase price: $212 million.
– Fortis Property Group
Fortis Property Group proposes to purchase the LICH campus and lease a portion to NYU Langone Medical Center for urgent care services, a cancer care center and a freestanding basic care ER with four observational beds. The ER would be located in the Polak Pavilion. Lutheran HealthCare would provide clinical services in the LICH service area. An ambulance would be stationed at the ER site to transfer serious cases to a hospital. Fortis would donate $5 million towards community health care. Fortis plans rental, condo and town home development, with 25 percent affordable. No new zoning is anticipated. Purchase price: $240 million.
– LANA Acquisitions
LANA Acquisitions proposes an urgent care center and freestanding ER with a broad range of primary and specialty care services, to be located in the Polak Pavilion. They also propose a dialysis center, mental health clinic and more. The remaining area of the Polak Pavilion would house a 150 – 200-bed nursing home. LANA is considering locating assisted living services in another LICH building. They intend to use the 91 – 95 Pacific Street structure for a public school. The remaining buildings would be used for real estate development. Purchase price: $230 million.
– Peebles Corporation
Peebles Corporation proposes to partner with North Shore-LIJ, Maimonides Medical Center and ProHEALTH physician practice to provide a freestanding ER, urgent care, ambulatory surgery and specialty services in 90,000 sq. ft.. The Institute for Family Health would operate a health center in Red Hook or Gowanus. Transition: existing ER in Polak Pavilion would offer urgent care until facilities could be developed in Othmer Pavilion. Patients needing a hospital would go to Maimonides or other hospitals. Peebles would set aside $7.5 million to develop new jobs outside of the hospital. The LICH properties would be developed as mix-use.
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