Long Island College Hospital Awarded $22 Million to Ease Debt, Allow Merger Talks to Progress
ALBANY, N.Y. (Oct. 1, 2009) - Governor David A. Paterson today announced that Long Island College Hospital (LICH) has been awarded $22 million under the Health Care Efficiency and Affordability Law for New Yorkers (HEAL NY) to ensure continued delivery of essential health care services in Brooklyn.
Under the grant, LICH will pay off some of its long-term debt, which will improve its financial standing and make it more attractive as a merger partner. LICH officials have been in discussions with SUNY Downstate Medical Center concerning corporate consolidation, which would create a more-efficient health care delivery system to serve the greater Brooklyn community. Restructuring LICH's debt portfolio is vital to the creation of a merged system, allowing for the re-direction of resources to make health care services more cost-effective.
Commissioner Daines said, "Both Long Island College Hospital and Downstate Medical Center are taking the right steps to analyze the health care needs of their community and address those needs into the future. The funding awarded today will make it possible for consolidation talks to move ahead. I thank Governor Paterson for his commitment to the HEAL NY program and to quality health care for all New Yorkers. We look forward to seeing health care in this section of Brooklyn 'rightsize' itself to deliver more community-based care in a most cost-effective manner."
The award is administered jointly by the New York State Department of Health and the Dormitory Authority of the State of New York.
Dormitory Authority Executive Director Paul T. Williams Jr. said, "HEAL NY has worked to enhance quality of care and quality of life for thousands of New Yorkers, while also making the delivery of these critical health services more cost effective."