Bankrupt Lake Shore Hospital to Receive $5M in FEMA Funds

Positive developments continue for Lake Shore Health Care Center in Irving, N.Y., as the bankrupt hospital is now set to receive $5 million in federal aid, according to a Buffalo News report.

In 2009, Tri-County Memorial Hospital in Gowanda, N.Y., closed its inpatient services after massive flooding destroyed its facility. The Federal Emergency Management Agency helped pay for a new outpatient and urgent care facility, but Lake Shore had to take on Tri-County Memorial's inpatient volumes, according to the report.

Consequently, Lake Shore is eligible to receive up to $5 million in FEMA money related to storm costs. However, the federal funds can only be used toward capital improvements, not day-to-day operations.

In December, TLC Health Network, the operator of Lake Shore, filed for Chapter 11 bankruptcy. Previously, Lake Shore announced it could close as soon as Jan. 14 if it did not receive supplemental funding. New York officials plan to give Lake Shore $1 million in operational funding to keep it open for another month while Anthony Borrello, a local businessman, conducts due diligence on a possible deal.

More Articles on Lake Shore Health Care Center:
Lake Shore Health Care Center Granted Short-Term Funding
10 Hospitals That Filed for Bankruptcy in 2013
Lake Shore Health Care Center's Operator Officially Files for Bankruptcy

Copyright © 2023 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars