The 162-bed LBMC has been closed since it sustained heavy flooding damage from Hurricane Sandy in October 2012. In a joint statement, LBMC and South Nassau officials said although LBMC worked with the Federal Emergency Management Agency and conducted repairs, the massive storm put LBMC in a position where it could not recover financially.
The two organizations signed an asset purchase agreement in which South Nassau will purchase LBMC’s assets for $21 million, according to a Bloomberg report.
Officials said LBMC will not reopen as a full-service acute-care hospital. Instead, South Nassau will establish an urgent care center in Long Beach. The New York State Department of Health awarded $6.6 million to South Nassau last October to help pay for the project.
“[South Nassau] will work on the redevelopment of the LBMC campus so that the residents of Long Beach and surrounding communities have access to high-quality healthcare services,” the statement read.
More Articles on Hospital Bankruptcy:
Bankruptcy Court Approves Sale of Saint Francis Hospital to Westchester
Gilbert Hospital Files for Chapter 11 Bankruptcy
Casa Grande Regional Files for Bankruptcy, Signs Deal With Banner
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.