Interfaith emerges from bankruptcy; LICH transition continues

June 10, 2014 Heather Chin
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Interfaith Medical Center has emerged from bankruptcy with a new restructuring proposal that has been approved by a federal judge. The announcement comes a year and a half after the hospital, located in Bedford-Stuyvesant, filed for Chapter 11 bankruptcy protection. The new proposal now goes to new management and a new board, which will oversee how the plan is implemented.

Still, residents and local elected officials such as Congressmember Hakeem Jeffries are thrilled that Interfaith cleared this financial hurdle.

“Time and time again, Interfaith Medical Center found itself on life support over the last year [but] the community never gave up, and together we fought for our safety net hospital to be revived,” wrote Jeffries in a statement. “The emergence from bankruptcy is a substantial step toward central Brooklyn finally getting the world class medical institution we deserve.

As part of the bankruptcy settlement, the nonprofit IM Foundation agreed to contribute $750,000 to a fund “to protect doctors from pre-bankruptcy malpractice claims as well as any refund it receives from a prior contribution of $200,000 for post-bankruptcy malpractice claims.”

The foundation also cedes ownership of two parking lots used by the hospital. In exchange, it receives property at 515 Herkimer Street, 276 and 278 Nostrand Avenue.

“Interfaith is an integral part of this community and we’re proud to have played a role in ensuring this hospital continues serving this community,” said IM Foundation President Diane Porter. “Now that we can finally move on, we are excited to reintroduce ourselves to the community.”

Brooklyn’s hospital drama also continues at Long Island College Hospital (LICH), as top bidder Fortis Property Group and its medical partners NYU Langone Medical Center and Lutheran Medical Center are still in negotiations with the State University of New York to finalize the purchase and transfer ownership.

Fortis’ plan is to convert the 43-acre site into a combination residential/healthcare campus, with condominiums, at least 25 percent designated affordable housing, and a “state-of-the-art healthcare facility” with a 24 hour/7-days-a-week freestanding ER, as well as an urgent care center, ambulatory surgery center, cancer center, primary and preventive care, comprehensive women’s services and other specialized health services.

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