The long pending merger of Long Island College Hospital into SUNY Downstate Medical Center may be closer to consummation, as the State is expected to announce approval of the deal tomorrow.
Wall Street Journal: State officials are expected to announce Thursday that SUNY Downstate Medical Center will take over the financially ailing Long Island College Hospital in Brooklyn, aided by $40 million in state grants, according to two people familiar with the matter.
Gov. David Paterson is scheduled to announce the deal, along with the grant awarded to retire some of LICH’s debt, according to a state official who wasn’t authorized to disclose the announcement. That money is on top of $22 million in state grants given to Downstate last October.
If the deal goes through, SUNY will continue to operate LICH at its location in Cobble Hill.
Update: It’s official. Today, Thursday, October 14, Governor Paterson announced the $40 million grant to enable SUNY Downstate to acquire LICH from Continuum Health Partners.
According to the Governor’s press release:
John C. LaRosa, M.D., President of SUNY Downstate, said: “I want to emphasize that the agreement with Continuum represents a significant step forward, but there are many more review and approval steps that must be completed before an agreement can be finalized. This agreement will also strengthen Downstate’s education and training mission and preserve Downstate’s standing as the hub of medical education in Brooklyn. Equally important, critically needed healthcare services in Brooklyn will be safeguarded.”