Interfaith Hospital in Brooklyn, NY Looking to Need a State Bail Out And May Be Out of Money to Meet Payroll As Early as Septemb
Posted Aug 03 2012 1:41am
Here’s another story of a community hospital in need of money to continue serving the community. Interesting that just a few miles away in Manhattan on the stock exchanges lost over $400 million with an algorithm today. This is the story on the world of investments and lack of resources for healthcare. The hospital was looking at joining forces with another facility, Brooklyn Hospital Center but they were stuck on figuring out the the formulas to make it happen and D Day is approaching. When you read the article, they stated that Interfaith needed about $10 to $30 million to keep going, a very small portion of the amount of money wiped out by a mini second algorithm on the markets.
Now the folks at Brooklyn won’t even come to the table to talk. Remember that St. Vincent’s Hospital Manhattan went belly up not too long ago, so what will the state do I guess is the big question. Last time I wrote about this hospital they were really doing some nice IT work with thin clients and saved a lot of money doing so. BD
The hospital, Interfaith Medical Center , serves a largely Caribbean-American and poor population in Bedford-Stuyvesant and north-central Brooklyn. Interfaith’s chief executive, Luis Hernandez, said this week that while the hospital was making payroll and paying vendors, it had only 18 days to 20 days of cash on hand and it had not been able to pay interest on its state-backed mortgage since November.
Mr. Barotz said that Interfaith — which has 287 beds, 120 of them psychiatric — needed $10 million to $30 million to keep going, depending on how long it had to wait for a reorganization. He said Interfaith officials recognized that the state, given its own financial constraints and policy mandates for less hospital-centered care, was loath to subsidize ailing hospitals, as it did with St. Vincent’s Hospital Manhattan before it went bankrupt and closed in 2010. But he contended that if an infusion of cash would keep Interfaith open until it could be reconfigured, “that would be a relatively inexpensive price to pay.”
But since then, Mr. Barotz said, Mr. Rodriguez has expressed opposition to Brooklyn Hospital’s being the lead hospital and has balked at sharing financial information, making it all but impossible to come up with a realistic plan.