Montefiore Medical Center may buy New York Westchester Square Medical Center
Montefiore Medical Center is anticipated to acquire bankrupt New York Westchester Square Medical Center when the Bronx community hospital puts itself on the auction block next month for $14 million.
The hospital will be in bankruptcy court to ask a judge to approve the proposed auction. The hospital filed a notice with state Department of Labor that it will lay off 586 unionized workers by the end of March.
The company Montefiore plans to make job offers to hundreds of union members. The Bronx community hospital has been fighting for its life since the state’s Berger commission mandated its closure slated for December 2008 but delayed by a law suit and a bankruptcy filing six years ago.
Now the hospital wants to close on the sale by March 31 to avoid the liquidity crisis that could cause it to shutter for good. Westchester Square Hospitals real estate assets recently were appraised at about $12.9 million.
Montefiore is willing to bid $14 million using a $20 million state grant to fund the buy. As a condition of the sale to Montefiore, Westchester Square will either close all inpatient services at the 140-bed hospital. It will reconfigure as an ambulatory care unit with an urgent care center, outpatient surgical facilities and comprehensive primary care services.
Montefiore’s primary care services will use the patient-centered medical home model, which focuses on preventing and coordinating care among the patient’s doctors. The executives of the hospital were budgeting for an estimated cash flow of $9 million. The cumulative operating losses at the hospital hit nearly $15 million since it filed for bankruptcy, as per the union’s court documents. Montefiore Medical Center is the university hospital for Albert Einstein College of Medicine. The hospital is named for Moses Montefiore and is one of the 50 largest employers in New York state.