Montefiore to Acquire Another Bankrupt Hospital
For the second time in three months, Bronx-based Montefiore Medical Center has announced it will buy a financially troubled suburban hospital. This time it is Sound Shore Health System, which operates two hospitals in New York.
Financially troubled Sound Shore Health System was thrown a lifeline last week when Montefiore Medical Center petitioned a federal bankruptcy court for permission to buy the two-hospital system. Terms of the deal were not disclosed.
Sound Shore Health System includes the 252-bed Sound Shore Medical Center of New Rochelle, and the 196-bed Mount Vernon Hospital. Montefiore said in a media release that it plans to keep open both hospitals and a skilled nursing facility. Sound Shore filed for Chapter 11 protection last week, just hours before Montefiore petitioned the court.
"Providing ongoing jobs and supporting the local economy are important benefits of a vital healthcare system," Steven M. Safyer, MD, president/CEO of Montefiore Medical Center, said in a media release."We are making a long-term commitment to lower Westchester to support and improve the health of area residents as well as the health of the local economy."
John Spicer, president of Sound Shore, told WVOX in Westchester that Montefiore has agreed to invest "a minimum" of $60 million for renovations.
"(A) new patient care unit, a number of infrastructure improvements, meaning new boilers, new roofs. So they're committing a significant amount of resources to upgrade facilities—both at Mt. Vernon and Sound Shore," Spicer said. "We are going to go through a restructuring process and they're putting significant resources behind that, in the $60 million-plus range. So they're committing a lot of money."